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Qatar Steel News

25 March 2013

Qatar & Algeria in Joint Venture Deal for Steel Complex in Algeria – Bellara

pixint-dev
25 Mar 2013
In: All news

Doha- Qatar

The governments of Qatar and Algeria have decided to enter into a joint venture, for the construction of a steel complex in Algeria, at the industrial Area of Bellara, (Jijel).

The planned steel complex will have a total production capacity of 4 million tons per year, while it is designed to produce 2 million tons of steel rebars in its first phase.  (1,5 MT of steel rebars & 500,000 Tons of Wiring rod,) to meet the requirements of the local market, on a priority basis.

The joint venture was signed by the two sides on 7th Jan. 2013, while the shareholders’ agreement was signed on 24th March, 2013, for the construction and operation of the steel complex. Algeria (represented by Sider Co. & National Investment Fund) will hold 51% stake, while Qatar Steel International will hold the remaining 49% (represented by Qatar Steel 24,5%, and Qatar Mining 24,5%).

The joint venture is scheduled to be established within a month, and the project is expected to take 42 months. The plant’s Commercial production, expected to start in 2017, is planned to meet Algeria’s requirements of iron and steel, with an estimate capacity of over 5 million tons, in its final phase.

Algeria now imports about 3 million tons of steel rebars and wiring rods. According to a feasibility study, conducted by an international Consultant Bureau, selected by both sides, the steel complex will cost $2 billion in its first phase. The project will create more than 1000 direct jobs and thousands of indirect jobs.

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