Algerian-Qatari Joint Venture to Build 5 Million-Ton Steel Mill

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--In addition to massive infrastructure spending plans, Qatar has been making strategic industrial project investments in developing countries after being chosen as the host nation for the 2022 World Soccer Cup. The nation is planning to spend 10% of its output annually on the domestic infrastructure build-out.

In January, Qatar signed a joint venture agreement with Algeria for the construction of a 5 million-ton-per-year steel complex in Algeria for the production of steel rebars and wiring rods. A shareholders agreement has now been signed for the construction and operation of the steel complex.

The project will be sited in the industrial area of Bellara (Jijel), with Algeria represented in the joint venture with a 51% stake by Sider Company and National Investment Fund. Qatar will hold the 49% balance through Qatar Steel International and Qatar Mining (each with 24.5%).

It is estimated that the first phase of the project will involve an investment of about $2 billion and will have a production capacity of 1.5 million tons annually of steel rebar and 500,000 tons of wiring rods.

Following the establishment of the joint venture, the project is scheduled to take 42 months to complete. Commercial production will start in 2017, from where it will move into the second and final phase, giving a total annual production capacity of 5 million tons.

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