Qatar, Algeria sign JV for new steel plant
First phase of joint project to cost $2bn, production to start in 2017
Qatar and Algeria are jointly constructing a steel complex in the North African country, with a total production capacity of four million tonnes of per annum (mtpa) of steel rebar and wiring rod, reports Gulf Times.
The first phase of the project, which is expected to cost $2bn, will produce 1.5 mtpa of steel rebar and 0.5 mtpa of wiring rod to meet the requirements of Algeria, which currently imports about 3 mtpa of steel rebar and wiring rod.
The steel complex at the industrial area of Bellara (Jijel) is being constructed through a joint venture in which Algeria, represented by Sider Company and National Investment Fund, will have a 51% stake, while the remaining 49% will be held by Qatar, represented by Qatar Steel International and Qatar Mining, with 24.5% each.
The joint venture is scheduled to be established within a month, while the project duration is 42 months. Commercial production is slated to start in 2017, with an estimated capacity of more than 5 mtpa in its final phase.
Pursuant to a joint venture pact signed on 7 January, a shareholders’ agreement was signed on Sunday for the construction and operation of the steel complex.
The planned steel complex will create more than 1,000 direct jobs and thousands of indirect jobs in Algeria.
Algeria also signed accords with Qatar and Norway to build fertiliser factories as growing populations boost food demand, spurring farmers to plant more crops, according to Bloomberg.