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Industries Qatar (IQ) has announced that Qatar and Algeria have entered into a joint venture for the construction of an integrated steel complex in Algeria
The planned steel complex would have a total production capacity of four million metric tonnes per annum (MT/PA), with Phase One of the project having a capacity of 1.5mn MT/PA of re-bar and 500,000 MT/PA of wire rod.
The joint venture agreement is expected to consist of Algerian representatives Sider and Fonds National D’investissement, who will hold 51 per cent of the new company, while Qatar Steel International, represented by IQ subsidiary Qatar Steel, and Qatar Mining, will hold the remaining 49 per cent on an equal basis.
The joint venture has been scheduled to be established within a months' time and the facility is expected to take 42 months to construct.
The plant’s commercial production, expected to start in 2017, has been planned to meet Algeria's requirements of over five million MT/PA of steel.
Algeria currently imports about three 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 would cost US$2bn in its first phase, with IQ’s total share of US$500mn.