Arcelormittal and Sider will increase the production of metal rolling in Algeria

The metallurgical giant company Arcelormittal and the Algerian company Sider controlled to it, intend to stimulate the production of steel at their joint steel plant Annaba against the backdrop of the growing demand for metal distribution in Algeria from auto manufacturers who open new plants in this region.

ArcelorMittal and Sider signed an investment agreement of $ 763 million. Investments in this enterprise in order to increase production capacities. Thus, by 2017, Annaba will be able to produce 2.2 million tons of metal rolling per year. The companies also plan to invest in the steel factory in the city of Owenza and the Bouukhadra mine, which provides data from the enterprises with iron ore. At the same time, ArcelorMittal will reduce its share of ownership of all these enterprises to 49 percent, and Sider, on the contrary, will increase its share to 51 percent. Earlier, ArcelorMittal belonged to 70 percent of the shares of these enterprises.

The investment plan will be implemented by financing with certain shared contributions by both companies involving bank lending.

These investments, according to the Algerian government, will help the country become self -sufficient in terms of metal production, which is especially relevant against the background of the increase in demand for steel from car manufacturers who master a very promising North African market and build new assembly plants there due to the fact that demand for cars began to increase in the region. For example, the French car manufacturer Renault announced the plans to build a car assembly plant in Algeria, which will become the second in North Africa after the construction of such an object and its launch last year in Morocco.

Annaba is the largest steel plant in the Maghriba region. It produces hot and cold rental, used in the automotive industry and production of household appliances, as well as varietal rental, which is in demand among builders.