Qatar, Algeria confirm $2bn steel plant deal

Industries Qatar says new facility in north Africa country will meet needs of home market

Industries Qatar said on Wednesday that the governments of Qatar and Algeria have entered into a joint venture to build a steel production plant in the north African country.

The industrial giant with interests in petrochemicals, fertilisers and steel products, said the planned steel complex will have a total production capacity of 4 million metric tonnes per annum (MT/PA).

It added in a statement that phase one of the project will have a capacity of 1.5 million MT/PA of re-bar and 500,000 MT/PA of wire rod to meet the requirements of the Algerian market.

According to a feasibility study conducted by an international consultant selected by both parties, the steel complex will cost $2bn in its first phase.

The project is expected to create more than 1,000 direct jobs and thousands of indirect jobs.

Under the agreement, Algeria, represented by Sider and Fonds National D'investissement, will hold 51 percent of the new company, while Qatar Steel International, represented by Qatar Steel (24.5 percent), a wholly owned subsidiary of Industries Qatar, and Qatar Mining (24.5 percent), will hold the remaining 49 percent.

The joint venture is scheduled to be established within a month, and the facility is expected to take 42 months to construct.

The plant's commercial production, expected to start in 2017, is planned to meet Algeria's requirements of over 5 million MT/PA of steel.

Algeria now imports about 3 million MT/PA of re-bar and wire rod.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Banking on reforms in Kuwait

Banking on reforms in Kuwait

As Kuwait stares down its first deficit in 20 years, the Gulf...

Forgotten fees: the challenge of investing in Dubai property

Forgotten fees: the challenge of investing in Dubai property

Investors attracted to low service charges at some Dubai residential...

Saudis face dilemma between size and pricing in debut bond sale

Saudis face dilemma between size and pricing in debut bond sale

Riyadh is under pressure to maximise the size of its international...

Most Discussed