Mr Mohamed Benmeradi minister for industry of Algeria said that small and medium enterprises and investment promotion, has stated that the country plans to build JV steel mill together with Qatari investors in the Bellara industry zone near Jijel in eastern Algeria.

Mr Benmeradi said that the total investment in the JV will be USD 3.2 billion. A document of agreement has been signed between the 2 parties ahead of the signature of the final agreement. The factory will be 51% owned by the Algerians and 49% owned by the Qatari side.

According to sources, the new JV with a planned annual production capacity of 5 million tonnes will specialize in the production of long, flat and special steel. The new mill will produce in the 2.5 million tonnes of long steel per year in its Phase I. The new mill's production will used to develop the country's rail industry.

Mr Benmeradi stated that the investment will benefit the country in terms of reducing its steel demand from foreign countries. Algeria's iron and steel import value in 2010 totaled USD 10 billion constituting 20% of the country's overall imports.

(Sourced from Steel Orbis)
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