Algeria has frozen a $750 million deal with Egyptian steelmaker Ezz Steel and is in talks with other investors to replace the Egyptian firm, Algerian Industry and Investment Minister Hamid Temmar said on May 27, according to international press agencies.
"The project has been affected by the financial crisis and problems linked to soccer," Minister Temmar told parliament, referring to a dispute between
Egypt and Algeria over qualification for this year's soccer World Cup. "This has led to the complete freezing of the project. In order to replace Ezz Steel, we are currently studying projects from companies including ArcelorMittal and Algerian private company Cevital and Mitsui from Japan," the minister said. "But the limited area of the industrial zone of Bellara only allows us to accept two offers of these three," Mr. Temmar added.
In 2007, Ezz Steel signed an agreement with the Algerian government to invest $750 million in a
rebar plant in Algeria.
Diplomatic relations between
Egypt and Algeria were impacted due to clashes between rival supporters during World Cup qualifying matches. Crowds angered that the bus carrying the Algerian national team had been stoned in Cairo ransacked the offices of Egyptian corporation Orascom Telecom in the Algerian capital Algiers.
ArcelorMittal is the majority owner of the El-Hadjar steel plant near Algeria's eastern city of Annaba.