Algeria plans to nationalize ArcelorMittal Annaba

The Algerian government decided to increase its control over the local manufacturer Arcelormittal Annaba, which was acquired by Arcelormittal Corporation in 2001. The Algerian government will spend $ 200 million to pay for shares through the state sider groups to increase its share in Arcelormittal Annaba to 51% from the current 30%.

The Algerian government does this in order to support the El Hajar of the ArcelorMittal metallurgical complex Algeria, on which more than 7,000 people work. In 2012, the Algerian missile plant smelted only 580 thousand tons of steel, which is much lower than the planned level of 800 thousand tons. The complex has experienced serious financial problems over the past two years.

The position of Arcelormittal Annaba reached a critical level in October 2012. The metallurgical plant was forced to ask for massive intervention by the government to guarantee the continuation of the business in Algeria. The legal and economic aspects of the transaction scheduled for May 2013 were considered.

Arcelormittal Annaba is currently the largest integrated steel company in the Maghreb region. Its production capacity is 2 million tons of steel per year. The arsenal of the plant has its own iron ore mine called Mittal Tebtsa. The company also owns railways and berths in the port, which significantly simplifies the delivery of raw materials, garbage removal and shipment of finished products.

ArcelorMittal Annaba produces hot -rolled and cold -rolled leaf and rolled galvanized metal products, rolos, reinforcement and seamless pipes. The company has a strong position in the domestic market, as well as export products to the countries of Maghreb, Europe, the Middle East and Southeast Asia.