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ArcelorMittal's Algerian subsidiary, Annaba, has signed a funding agreement with Banque Exterieure d'Algerie (BEA) that will lead to increased steel production within the country

ArcelorMittalAnnaba will receive funding from Banque Exterieure d'Algerie to help increase steel production (Image source: ArcelorMittal)

"This financing agreement is a key to launch the development plan that will gradually increase production capacity to 1.4 million tonnes," said?the company?in a?statement.

The exact amount of funding was not disclosed.

In early March, the Board of ArcelorMitttal Algeria had accepted an investment plan (2012-2017) for the sum of US$200mn.

The firm currently produces a little more than one million tonnes a year and the deal will see the steel complex gradually boost production to 1.4 million tonnes per year.

ArcelorMittal Annaba is the largest production unit of steel tubes in North Africa and consists of a processing plant based in Annaba and two mines at Ouenza and Bouakhadra.

The steel complex is owned 70 per cent by ArcelorMittal and 30 per cent by the Algerian public group, Sider.