Algeria’s government proceeds with El Hadjar salvation plan

Friday, 18 October 2019 16:03:53 (GMT+3)   |   Istanbul
       

The Algerian authorities have approved the creation of an inter-ministerial committee to take care of the strategic plan for the support of local troubled El Hadjar Steel Complex. In addition to monitoring the supply situation of the steel producer, the committee will have to present proposals for solutions for the recovery of the asset, including the financial, organizational, production and labor issues, in order to strengthen its overall competitiveness. According to the sources, the report will be finalized within one month.

This is not the first attempt to assist the troubled producer, formerly known as ArcelorMittal Annaba. Once acquired and renamed, the company was supported by a long-term rehabilitation plan, which allowed the restarting of the production of steel, longs and partly flats. However, since last year El Hadjar Steel Complex has been suffering from numerous production stoppages due to disruptions linked to water, energy and raw material supplies and some labor strikes. In addition, it has been getting harder to compete locally as Tosyali Algerie and AQS have been gradually strengthening their positions. In the meantime, local demand for longs in the country is weak amid political unrest, SteelOrbis understands.


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