Dubai firm Emarat Dzayer to set up Dh5.87b steel plant in Algeria
dubai — Emarat Dzayer Group, a Dubai-based diversified business conglomerate, and Algerian government-owned Groupe Imetal have signed an agreement to develop a $1.6 billion (Dh5.87 billion) steel plant in Algeria’s Annaba province.
The agreement was signed on Tuesday in Algeria on the sidelines of the Algerian-Emirati Investment Forum in the presence of Abdel Malek Sellal, Prime Minister of Algeria; Shaikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister of the UAE and Minister of Presidential Affairs; Algeria’s Minister of Industry and Mines Abdeslam Bouchouareb, and other ministers from Algeria and the UAE.
The agreement will create Emarat Dzayer Steel Company, a joint venture in which Groupe Imetal will hold a 51 per cent stake through its two subsidiaries — Naftal (41 per cent) and Asimdal (10 per cent) — and the rest 49 per cent will be held by Emarat Dzayer Group.
The announcement is part of a series of 10 agreements between Algerian and UAE firms — both public and private sector organisations.
Emarat Dzayer Steel Company will produce 1.5 million tonnes of directly reduced iron per year and one million tonnes of steel in the form of rails, steel structures and seamless pipes.
Bilateral trade
Trade between Algeria and the UAE was worth Dh3.6 billion in 2015 and the UAE’s investments in Algeria amounted to more than $9 billion. Bouchouareb said the country is seeking to double the UAE’s investments to around $20 billion in the medium term.
The technology at the plant will be sourced from international companies from countries in Germany, Italy, the US and Japan, and will generate jobs for local population.
Ahmed Yazid Touati, chairman and CEO of Groupe Imetal, said: “The people of Algeria and the UAE enjoy a very close relationship. I feel this steel plant will meet local demand and help our national economy.”
The companies have also signed a second agreement for oil distribution with Naftal — a stateowned company for oil distribution — and Asmidal — a government-owned manufacturing company for petrochemicals.
The joint venture will also set up
The project will accelerate the growth of the industrial sectors of the uae and algeria Ajay Sethi, vice-chairman of Emarat Dzayer Group
manufacturing, blending and packaging facilities for lubricants and industrial lube oils catering to the auto, aviation, marine and industrial sectors. This project will meet growing local demand and promote exports to the Middle East and North Africa.
Ahmed Hasan Abdul Qaher Al Sheebani, chairman of Emarat Dzayer Group, said: “Algeria is abundant in natural resources and energy 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 the new steel company would support Algeria’s fast-growing infrastructure projects as well as exports.
“Naftal has a very strong distribution network and Asimdal has great industrial experience in Algeria,” Sethi said. “We see a great opportunity for growth and progress in Algeria. The project will accelerate the growth of the industrial sectors of the UAE and Algeria.”
— business@khaleejtimes.com