Qatar and Algeria in joint venture deal for steel complex
Source: BI-ME , Author: Posted by BI-ME staff
Posted: Wed March 27, 2013 2:02 pm
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QATAR. Industries Qatar, one of the region’s industrial giants with interests in the production of a wide range of petrochemical, fertiliser and steel products, confirmed that the governments of Qatar and Algeria entered into a joint venture for the construction of an integrated steel complex in Algeria on March 24th, 2013.

The planned steel complex will have a total production capacity of 4 million MT/PA, with phase one of the project having a capacity of 1.5 million MT/PA of re-bar and 500,000 MT/PA of wire rod to meet the requirements of the Algerian market.

The joint venture agreement was signed by the two sides on January 7th 2013, while the shareholders' agreement was signed on March 24th, 2013. Algeria, represented by Sider and Fonds National D’investissement, will hold 51% of the new company, while Qatar Steel International, represented by Qatar Steel (24.5%), a wholly owned subsidiary of Industries Qatar, and Qatar Mining (24.5%), will hold the remaining 49%.

The joint venture is scheduled to be established within a month, and the facility is expected to take 42 months to construct. The plant's commercial production, expected to start in 2017, is planned to meet Algeria's requirements of over 5 million MT/PA of steel.

Algeria now imports about 3 million MT/PA of re-bar and wire rod. According to a feasibility study conducted by an international consultant selected by both parties, the steel complex will cost $2 billion in its first phase, with IQ’s share of the cost totaling $ 0.5 billion. The project is expected to create more than 1,000 direct jobs and thousands of indirect jobs.

About IQ
Industries Qatar QSC was incorporated as a Qatari joint stock company on April 19, 2003. The business operations of the company comprise the direct holding of shares in the following subsidiary and joint venture companies: (i) Qatar Steel Company QSC (“QS”), a wholly-owned subsidiary, engaged in the manufacture and sale of steel billets and reinforcing bars; (ii) Qatar Petrochemical Company Limited QSC (“QAPCO”), a joint venture owned 80% by IQ, engaged in the production and sale of ethylene, low-density polyethylene (“LDPE”), linear low-density polyethylene (“LLDPE”) and sulphur; (iii) Qatar Fertiliser Company SAQ (“QAFCO”), a joint venture owned 75% by IQ, engaged in the manufacture and sale of ammonia and urea; and (iv) Qatar Fuel Additives Company Limited QSC (“QAFAC”), a joint venture owned 50% by IQ, is engaged in the production and export of methanol and methyl-tertiary-butyl-ether (“MTBE”).

The operations of the subsidiary and joint ventures remain independently managed by their respective management teams.

For more information, please visit www.iq.com.qa

 

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