Dubai-based Emarat Dzayer Group has announced that it has signed a memorandum of understanding (MOU) with the Algerian state-owned Groupe Imetal to develop a $1.6 billion steel plant in Algeria’s Annaba Province.
The agreement will create Emarat Dzayer Steel Company, a joint venture in which Groupe Imetal will hold a 51 percent stake and the remaining 49 percent will belong to Emarat Dzayer Group.
Emarat Dzayer Steel Company will produce 1.5 million mt of direct reduced iron (DRI) per year and 1 million mt of rails, medium to heavy sections and seamless pipes.
The project is also expected to create thousands of jobs and to increase the export earnings of Algeria, as well as substituting imports.