Qatar and Algeria to expand steel and farm projects

Qatar and Algeria have agreed to press ahead with an expansion of their joint steel plant in the North African country.

The two countries also agreed to pursue plans to establish one of the world’s largest farm projects in another multi-billion dollar joint venture.

Algerian industry minister Yahia Bachir discussed the projects with Qatari representatives in Algiers this week, the ministry said in a statement.

The steel plant is owned by Algerian Qatari Steel (AQS), which was established in 2013, with Algerian state-owned entities Sider and the National Investment Fund holding 51 percent and Qatar Steel International the reminder.

The project is a $2 billion venture located in the Bellara industrial zone in the north-eastern Jijel province, nearly 400km east of the capital Algiers, according to AQS and previous reports by the Algerian industry ministry.

The plant has a first phase production capacity of 2 million tonnes per year and planned expansions aim to double output.

“The meeting between the ministers and the Qatari delegations in Algiers focused on the second phase of Bellara complex expansion. This project is not merely an iron and steel plant. It is a strategic tool for achieving self-sufficiency in essential raw materials for construction and manufacturing, and for strengthening Algeria’s position as a regional steel supplier,” the ministry said.

“The expansion aims to increase the complex’s capacity to meet growing domestic demand and ensure the competitiveness of Algerian products in international markets.”

The statement said the meeting also covered a farm project dubbed ‘Baladna Algeria’ which will produce milk, dairy, infant formula and other farm products.

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“This project not only targets the local market but also aims to become a regional production hub given the Baladna Group’s global expertise in managing integrated agricultural and livestock complexes,” it added

In April, Qatar and Algeria launched phase two of the Baladna project involving total investments of nearly $3.5 billion.

Baladna, Qatar’s largest farming company, signed the agreement in the capital Algiers, the Qatari state news agency reported.

Phase two involves investment of about $635 million in cattle breeding and farmland for the production of powdered milk.

It also includes establishing an air link with nine US states to ship 30,000 cattle during a period of 10 months.