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World's largest steel producer ArcelorMittal and Algeria's state-owned company Sider have finalised a strategic agreement for an investment plan of $763 million for a steel complex at Annaba, among other things.
"The plan includes a project to more than double the plant's production capacity from 1 million to 2.2 million tons per year by 2017," ArcelorMittal said in a statement.
The plan, it said, will see ArcelorMittal reducing its shareholding in both ArcelorMittal Annaba and ArcelorMittal Tebessa to 49 per cent, with the state of Algeria holding the remaining share of 51 per cent.
The investment plan will be funded by equity contributions from shareholders and bank financing. The shareholders' agreement between the parties involved is to be signed in the coming days, the statement added.
"This plan will ensure a long-term future for steelmaking in Annaba and mining in Tebessa, where the production unit will be modernised through the relining of the blast furnace, modernisation of the sinter plant, the steel plant and the rolling mills," said ArcelorMittal.
