An agreement to build a 5Mt/y mill in the Gigel industrial zone of Algeria has been signed between the governments of Algeria and Qatar.

The mill will produce rebar in its first phase which is expected to have a capacity of 2.5Mt/y. Output will be targeted to the needs of the Algerian railway industry.

The Algerian government will hold 51% of shares and Qatar 49% – a requirement of Algerian law which necessitates any foreign partner holding a minority share.

Algeria’s annual production of crude of steel in 2010 was just 688kt and consumption that year was 4.7Mt – a figure down on the 6.43Mt in 2009.