Emarat Dzayer Group, a Dubai-based conglomerate, and Groupe Imetal, a Government of Algeria entity, have signed an agreement to develop a $1.6 billion steel plant in Algeria’s Annaba Province.
The agreement was signed on Tuesday on the sidelines of the Algerian-Emirati Investment Forum.
The agreement will create Emarat Dzayer Steel Company, a joint venture in which Groupe Imetal will hold 51 percent stake through its two subsidiaries – Naftal (41 percent) and Asimdal (10 percent) – with 49 percent held by Emarat Dzayer Group.
Emarat Dzayer Steel Company said in a statement that it will produce 1.5 million tonnes of directly reduced iron per year and 1 million tonnes of steel in the form of rails, steel structures and seamless pipes.
The value added products of this plant will generate and save foreign exchange reserve and thereby support the local economic growth, it added.
Bilateral trade between Algeria and the UAE stands at AED3.6 billion in 2015 and UAE investments in Algeria amounted to more than $9 billion.
Algerian Minister of Industry and Mines Abdesselam Bouchouareb said the country is seeking to double the UAE investments to around $20 billion in the medium term.
Ahmed Yazid Touati, chairman and CEO of Groupe Imetal, said: “The peoples of Algeria and the UAE enjoy very close relationship. I strongly feel that this value-added steel plant will be self-sufficient to meet the local demand and help our national economy.”
The joint venture will also set up a manufacturing, blending and packaging facilities of lubricants and industrial lube oils catering auto, aviation, marine and industrial.
Sheikh Ahmed Hasan Abdul Qaher Al Sheebani, chairman of Emarat Dzayer Group, added: “Algeria is abundant of natural resources, energy and market whereas the UAE has knowledge and technological skills. In this way they are natural partners to develop the industrial sector as a whole for mutual interest.”
Ajay Sethi, vice chairman of Emarat Dzayer Group, said: “We see a great opportunity for growth and progress in Algeria, and feel proud to have Groupe Imetal, Naftal and Asmidal as partners that are bound to create new chapter in Algerian steel industry and the project will accelerate the growth of the industrial sector of the UAE and Algeria.”