Algeria is moving forward with plans to modernize the El Hadjar steel complex in Annaba, with China's Baowu Steel Group expected to submit its proposed technological design and detailed roadmap for the project by the end of September 2026, according to local media reports.
Algerian industry minister Yahia Bachir has held consultations with a China Baowu delegation regarding the technical and economic aspects of the project. The government views the modernization of El Hadjar as a strategic priority within its efforts to strengthen the country's steel industry and increase integration between domestic iron ore resources and steel production.
The discussions with China Baowu go beyond rehabilitating El Hadjar's existing equipment and are aimed at defining a new industrial configuration for the complex.
Potential areas include advanced steelmaking technologies, direct reduction, DRI and HBI production and industrial digitalization, with the objective of improving productivity, reducing costs and increasing production of higher-value-added steel products.
China Baowu is expected to submit the final technological design, a draft memorandum of understanding and a detailed project roadmap by the end of September. These documents are expected to clarify the technologies, required investment and structure of the potential partnership.
El Hadjar, which employs around 6,300 workers, has previously targeted an annual production capacity of 1.2 million mt as part of its restructuring efforts.
Algeria seeks stronger integrated steel industry
The El Hadjar project forms part of Algeria's broader strategy to develop an integrated domestic steel industry based increasingly on local raw materials.
The modernization of El Hadjar is intended to complement this expansion by strengthening links between Algeria's iron ore resources, domestic steelmaking and downstream industries, while reducing reliance on imported steel products.
