Construction News

Sun June 20 2021

Related Information

ArcelorMittal finalises $763m Algerian steel deal

30 Sep 13 ArcelorMittal and Sider, an Algerian state-owned company, have finalised a strategic agreement that will enable US$763m (£473m) to be invested in the steel complex at Annaba and mines in Ouenza and Boukhadra.

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.”

Got a story? Email news@theconstructionindex.co.uk

MPU

Click here to view more construction news »