Qatar and Algeria have signed a memorandum of understanding (MoU) for the construction of an iron and steel production facility in the industrial area of Bellara in the state of Jijel in Algeria, which will have a production capacity of 5 million metric tons per year, as reported by Qatari newspaper Gulf Times. The MoU was signed by Qatar's Minister of Economy and Finance Yousef Hussein Kamal and Algeria's Minister of Industry Mohamed Benmeradi.
The plant will produce 2.5 milion metric tons per year of long steel in the first phase, while upon completion of the second phase the plant will produce a total of 5 million metric tons of long, flat and special steel.
The Qatari minister said that Sheikh Hamad bin Khalifa al-Thani, ruler of Qatar, attached "a special importance to the factory project which will produce and market steel in Algeria". Production will start within 30 months at most, the minister added.
The joint venture steel mill will be 49 percent owned by Qatar and 51 percent owned by Algeria in accordance with Algerian investment law.