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FINANCIAL NEWS
Qatar, Algeria to begin work on steel project
29 Dec 2014
(MENAFN) Qatar said that it is set to begin working construction on the joint steel and iron plant it is planning with Algeria in January, with production expected to start on schedule in 2017, Emirates 24/7 reported.
The USD1.2-billion project, which is expected to be based in the industrial Bellara zone in the eastern Algerian Mediterranean port of Jijel, is expected to have an initial production capacity of 2 million tons of steel and iron per year, though it could eventually reach 5 million tons annually.
The project is a result of a memorandum of understanding signed in Doha in 2013 between state-controlled Qatar Steel and Algeria’s national steel and iron company Industrial Park Cedar, which also stipulated that Cedar will control 51 percent of the project while 49 per cent is held by Qatar Steel, which is owned by Industries Qatar an affiliate of the government-owned Qatar Petroleum.
The plant’s production would be marketed locally to help Algeria reduce its soaring steel and iron imports, which exceeded USD10 billion for the first time in 2011.
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