The government of Algeria has decided to increase its control of local steel producer ArcelorMittal Annaba which was purchased by ArcelorMittal in 2001, according to domestic media reports. The Algerian government will pay $200 million through the public group Sider, to increase its stake in ArcelorMittal Annaba to 51 percent from the current 30 percent.
The Algerian government wants to increase its stake in the ArcelorMittal subsidiary in order to save the El Hadjar steel complex of ArcelorMittal Algeria, which employs 7,000 people and which produced only 580,000 mt of crude steel in 2012, below the planned level of 800,000 mt. The steel complex has been in serious financial trouble for two years. According to the El Watan newspaper, "Despite the implementation of financial measures, the financial position of ArcelorMittal Annaba reached a critical stage in October 2012. One month later, ArcelorMittal Annaba again requested massive intervention from government to guarantee the continuation of the business in Algeria."
Three weeks has been granted by the Algerian Ministry of Industry to both parties to consider all economic and legal aspects of the latest planned transaction before its implementation in May 2013.
With the steel complex in Jijel which is expected to produce an estimated 4.8 million mt of steel starting from 2016 and also with ArcelorMittal Annaba, Algeria wants to ensure self-sufficiency in steel by 2025, as reported by El Watan.
ArcelorMittal Annaba is currently the largest integrated steel plant in the Maghreb region and is located 12 km south of the city of Annaba. It has a steelmaking capacity of 2.0 million metric tons a year. The plant has its own captive iron ore mines located in Ouenza and Boukhadra under the name Mittal Tebessa. Dedicated port facilities, connected by rail to the plant, ensure efficient movement of incoming raw material and despatch of finished products to the domestic and export markets.
ArcelorMittal Annaba's finished product range includes hot rolled and cold rolled coils and sheets, hot dip galvanized products, tinplate, wire rod, rebar and seamless tubes. With a strong hold on its domestic market, the company also exports output to other Maghreb countries, Europe, the Middle East, China and Southeast Asia.
