UAE firm to set up $1.6bn steel plant in Algeria
New joint venture has been formed by Emarat Dzayer Group and Groupe Imetal to produce steel, part of a 10 series agreement between UAE and Algerian firms
UAE business conglomerate, Emarat Dzayer Group and Algerian firm, Groupe Imetal have signed a contract to establish a steel company in Algeria.
Emarat Dzayer Steel Company, in Algeria will produce 1.5 million tonnes per year of directly reduced iron (DRI) and one million tonnes of steel in the form of rails, steel structures, and seamless pipes.
The cost of the project is projected to be approximately $1.6bn (AED5.87bn), Gulf News reported, citing Emarat Dzayer Group.
The agreement will create Emarat Dzayer Steel Company, a joint venture in which Groupe Imetal will hold a 51% stake through its two subsidiaries — Naftal (41%) and Asimdal (10%) — and 49% will be held by Emarat Dzayer Group.
The announcement is part of a series of 10 agreements between Algerian and UAE firms, both public and private sector parties.
Bilateral trade between Algeria and the UAE stood at $1bn (AED3.6bn) in 2015 and the UAE investments in Algeria amounted to more than $9bn (AED33bn).
Abdeslam Bouchouareb, Minister, Industry and Mines of Algeria said that the country is seeking to double the UAE investments to around $20bn (AED73.4bn) in the medium term.
The technology will be sourced from highly specialised international technology companies from countries such as Germany, Italy, the US and Japan, and will generate jobs for local population.
The companies have also signed a second agreement for oil distribution with Naftal — a state-owned company for oil distribution and Asmidal — a government-owned manufacturing company for petrochemicals.
The joint venture will set up a state-of-the-art manufacturing, blending and packaging facilities of lubricants and industrial lube oils catering auto, aviation, marine and industrial sectors.
This project will be first of its kind in Algeria and will meet the growing local demand and will export to the Middle East and North Africa (MENA) region.