Mohamed Benmeradi, Algeria's minister for industry, small and medium enterprises and investment promotion, has stated that the country plans to build a joint venture (JV) steel mill together with Qatari investors in the Bellara industry zone near Jijel in eastern Algeria.
The total investment in the JV will be $3.2 billion. According to Mr. Benmeradi's statement, a document of agreement has been signed between the two parties, ahead of the signature of the final agreement. The factory will be 51 percent owned by the Algerians and 49 percent owned by the Qatari side.
The new joint venture, with a planned annual production capacity of 5 million mt, will specialize in the production of long, flat and special steel. According to media sources, the new mill will produce in the 2.5 million mt of long steel per year in its first phase. The new mill's production will used to develop the country's rail industry.
Mr. Benmeradi also 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 $10 billion, constituting 20 percent of the country's overall imports.