Qatar and Algeria will enter into a joint venture, to construct a steel complex costing $2bn in Algeria's industrial area of Bellara (Jijel), a press statement said.
The planned steel complex will have a total production capacity of 4 million tons per year, while it is designed to produce 2 million tones (MT) of steel rebars in its first phase (including 1.5 MT of steel rebars and 0.5MT of wiring rods) to meet the requirements of the local market, on a priority basis.
The joint venture was signed by the two sides on January 7, while the shareholders' agreement was signed on March 24, for the construction and operation of the steel complex. Algeria (represented by Sider Co & National Investment Fund) will hold 51 percent stake, while Qatar Steel International will hold the remaining 49 percent (represented by Qatar Steel 24.5 percent, and Qatar Mining 24.5 percent).
The joint venture is scheduled to be established within a month, and the project is expected to take 42 months. The plant's commercial production is expected to start in 2017.