Qatar and Algeria are set to double the capacity of their joint steelworks

The cost of expanding the existing plant is estimated at $2 billion

Algeria and Qatar have reached an agreement to expand the capacity of their joint steelworks in Algeria – located 400 km east of the capital – to 4 million tonnes of steel per year. The project is estimated to cost $2 billion, according to AGBI.

Algeria’s Minister for Industry, Yahya Bashir, held a meeting with representatives from Qatar in the country’s capital, Algiers, to discuss future projects in detail, as stated in an official announcement by the relevant ministry.

The main focus of bilateral cooperation is the development of the steel sector. The parties agreed to continue expanding the existing steelworks, located in the Bellara industrial zone (400 km east of the capital).

The plant is owned by Algerian Qatari Steel (AQS), which was founded in 2013. Currently, 51 per cent of the company’s shares are controlled by Algerian state entities — Sider and the National Investment Fund — whilst the remaining shares are held by Qatar Steel International.

The plant’s production capacity in the first phase is 2 million tonnes per year, and the planned expansion aims to double production volumes.

“The meeting between ministers and Qatari delegations in Algiers focused on the second phase of the Bellara complex’s expansion. This project is not merely a steelworks. It is a strategic tool for achieving self-sufficiency in the raw materials needed for construction and manufacturing, as well as for strengthening Algeria’s position as a regional steel supplier,” the ministry stated.

As reported by GMK Center, Turkey’s Tosyali Holding is preparing to commence production of automotive steel in Algeria in the third quarter of this year.  This move is part of the company’s ongoing investment in the country, totalling $2.5 billion. The company plans to expand its production capacity in Algeria by 3 million tonnes, which will enable it to double its daily output from 50,000 to 100,000 tonnes of steel within 30 months.