Plans include a project to more than double the plant’s production capacity from 1 million to 2.2 million tons per year by 2017. ArcelorMittal will reduce its shareholding in both ArcelorMittal Annaba and ArcelorMittal Tebessa to 49%, with the state of Algeria holding the remaining share of 51%. The investment plan will be funded by equity contributions from shareholders and bank financing.
This scheme is designed to ensure a long term future for steelmaking in Annaba and mining in Tebessa through the modernisation of production equipment. A new electric steel plant will be built - including an electric arc furnace and continuous casting line - and the downstream units will be reinforced with the construction of a new rolling mill for rebar and wire rod with a production capacity of 1 million tons.
“We are pleased to have reached this agreement with Sider, with whom we have always enjoyed a strong relationship,” said ArcelorMittal management board group Michel Wurth. “The agreement will enable ArcelorMittal Annaba and ArcelorMittal Tebessa to play a long term role in Algeria’s steel and mining industries. We now look forward to implementing a plan that is in the interests of both the company and the country.”