Algerian integrated steel producer El Hadjar, which has been in difficulties for years now, continues to come up against new challenges. Following a corruption scandal, the company has recently had its bank accounts blocked by Algeria’s National Insurance Fund. The authority stated that the steel company owes it around DZD 860 million ($6.67 million) with most of the debt being due for social responsibility payments, according to local media. In addition, the company has been receiving claims from key domestic natural gas suppliers and railway operators, which may bring El Hadjar closer to a default situation.
Traders in Algeria state that El Hadjar is not producing these days and is selling only minor lots from stocks. Last week, the government-owned IMETAL holding replaced the chairman and the CEO of the company as a result of misperformance over the previous years which led to the heavy financial losses of El Hadjar, SteelOrbis understands.