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Qatar and Algeria in Joint Venture to Build Steel Complex in Algeria
03/27/2013 - Industries Qatar confirmed that the governments of Qatar and Algeria entered into a joint venture for the construction of an integrated steel complex in Algeria on 24 March 2013.
Industries Qatar, one of the region's industrial giants with interests in the production of a wide range of petrochemical, fertilizer and steel products, confirmed that the governments of Qatar and Algeria entered into a joint venture for the construction of an integrated steel complex in Algeria on 24 March 2013.
The planned steel complex will have a total production capacity of 4 million tonnes per year, with phase one of the project having a capacity of 1.5 million tonnes per year of rebar and 500,000 tonnes per year of wire rod to meet demand in the Algerian market.
The joint venture agreement was signed by the two sides on 7 January 2013, while the shareholders' agreement was signed on 24 March 2013. Algeria, represented by Sider and Fonds National D’investissement, will hold 51% of the new company, while Qatar Steel International, represented by Qatar Steel (24.5%), a wholly owned subsidiary of Industries Qatar, and Qatar Mining (24.5%), will hold the remaining 49%.
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 tonnes per year of steel.
Algeria now imports about 3 million tonnes per year of rebar and wire rod. According to a feasibility study conducted by an international consultant selected by both parties, the steel complex will cost US$2 billion in its first phase, with IQ’s share of the cost totaling $ 0.5 billion. The project is expected to create more than 1,000 direct jobs and thousands of indirect jobs.
