Swedish automotive safety systems leader Autoliv officially inaugurated the extension of its El Fahs facility in the Zaghouan governorate on June 25, 2026, backed by an investment of 84 million Tunisian dinars.
The expansion marks a strategic transformation for the site, shifting it from a finishing workshop into a fully integrated manufacturing hub for steering wheels designed for leading international automakers.
Until now, the El Fahs plant primarily handled finishing operations, relying on magnesium structures imported from Europe. With this new investment, Autoliv has localized the entire production chain in Tunisia.
The facility now manages the complete process—from raw material melting and molding, to precision leather wrapping, integration of electronic components, and final assembly.
The expansion leverages cutting-edge Industry 4.0 technologies, featuring smart, highly automated, and heavily digitized production lines. This upgrade aligns with Autoliv’s global strategy to develop high-performance industrial sites capable of meeting the automotive industry’s growing demands for superior quality, full traceability, and enhanced competitiveness.
A global player deeply rooted in Tunisia
Autoliv has maintained a strong presence in Tunisia since 1998, steadily expanding its industrial footprint. Today, the country stands as one of the group’s primary production platforms serving the European market. With major operations in El Fahs and Ennadhour, the group now employs over 4,500 people in Tunisia and continues to scale up its production capacity to match rising global demand.
As the world leader in automotive safety systems, Autoliv designs, develops, and manufactures airbags, seatbelts, steering wheels, and other occupant-protection equipment for all major international carmakers.
Operating across 25 countries, the group employs nearly 65,000 people and maintains a global network of production sites, technical centers, and R&D laboratories. In 2025, the company recorded annual revenues of approximately $10.8 billion.
Tunisia occupies a strategic position within this global industrial framework. Thanks to its proximity to Europe, a skilled and competitive workforce, and a rapidly expanding automotive ecosystem, the country has emerged as a cost-effective platform for high-value-added component manufacturing.
By fully integrating the steering wheel production process at El Fahs, Autoliv aims to increase the local value-added content of its output, enhance overall supply-chain efficiency, and further consolidate Tunisia’s role as a key export gateway to major European automakers.
Boosting a thriving automotive sector
The extension also reinforces Tunisia’s broader industrial ambitions. The country’s automotive sector currently brings together nearly 300 companies, generates more than 120,000 jobs, and ranks among the top contributors to national industrial exports.
This new investment by Autoliv is expected to further strengthen that momentum, driving greater technological integration and solidifying Tunisia’s reputation as a trusted manufacturing destination for the global automotive industry.
