The planned steel complex will have a total production capacity of 4 million MT/PA, with phase one of the project having a capacity of 1.5 million MT/PA of re-bar and 500,000 MT/PA of wire rod to meet the requirements of the Algerian market.
The joint venture agreement was signed by the two sides on January 7th 2013, while the shareholders’ agreement was signed on March 24th, 2013. Algeria, represented by Sider and Fonds National D’investissement, will hold 51% of the new company, while Qatar Steel International, represented by Qatar Steel (24.5%), a wholly owned subsidiary of Industries Qatar, and Qatar Mining (24.5%), will hold the remaining 49%.
The joint venture is scheduled to be established within a month, and the facility is expected to take 42 months to construct. The plant’s commercial production, expected to start in 2017, is planned to meet Algeria’s requirements of over 5 million MT/PA of steel.
Algeria now imports about 3 million MT/PA of re-bar and wire rod. According to a feasibility study conducted by an international consultant selected by both parties, the steel complex will cost $2bn in its first phase, with IQ’s share of the cost totaling $0.5bn. The project is expected to create more than 1,000 direct jobs and thousands of indirect jobs.
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