Algiers, November 01 (QNA) – General Manager and CEO of Algerian Qatari Steel (AQS) Yousef Ahmed Al Muhannadi expressed his appreciation for the inauguration of AQS by HH the Amir Sheikh Tamim bin Hamad Al-Thani and HE the President of the People’s Democratic Republic of Algeria Abdelmadjid Tebboune, explaining that AQS is one of the most important joint strategic investments between the two countries.
In an interview with Qatar News Agency (QNA), Al Muhannadi said that HH the Amir and HE President Abdelmadjid Tebboune’s inauguration of the company affirms the two leaderships’ interest in strengthening and developing strategic partnership in investment fields, similar to other areas of cooperation that witness strong momentum at various levels.
He emphasized that this company is a model for successful strategic and mutually beneficial partnerships between Arab countries, adding that the AQS is an embodiment and practical application of Algeria’s development vision in the industrial field, and it achieves the goals and objectives of Qatar National Vision 2030, especially the process of foreign investment and the diversification of income sources, in addition to its role in strengthening and consolidating relations between the two countries and attracting more investments to Algeria.
AQS was established in 2013 with a capital of USD 2.1 billion and joint ownership. The State of Qatar, represented by Qatar Steel International, owns 49 percent of the project value and 51 percent for the Algerian side.
The companys factory is located in the “Bellara” industrial zone, in Jijel, about 375 km east of Algiers, and extends over an area of 216 hectares, in addition to the part dedicated to incubating facilities for transporting and transferring raw materials at the level of Djen Djen port, which has an area of 10 hectares.
The factory also includes 60 individual buildings, 10 km of internal railway lines, and 23 km of roads linking the facilities, as it is an integrated industrial complex.
The General Manager and CEO of Algerian Qatari Steel (AQS) indicated that the construction of the plant was completed in 2020, but the conditions of the (Covid-19) delayed the official opening.
He said that it is fortunate that this joint Algerian-Qatari project will be inaugurated in conjunction with the work of the Arab Summit hosted by Algeria.
He stated that the factory, which started actual production in 2017, has a current production capacity of two million tons annually of rebar and iron wire, and a study is underway to raise production to four million tons annually. Al Muhannadi said that last year, the factory witnessed the entry of a direct reduction unit with a production capacity of 2.5 million tons annually of reduced iron, both cold and hot.
He noted that this unit is the largest in the world, and is one of the most important strategic units in the factory, which entered the actual production stage in October 2017.
He also referred to the unit for receiving raw materials, which has a production capacity of 3.8 million tons annually, which is a complete project in itself, not only for receiving iron ore, but also for exporting the final and semi-manufactured products as well.
In his interview with (QNA), Al Muhannadi explained that, in addition to its production of iron rods and coils of iron wire, the factory produces oxygen, nitrogen and argon through a gas separation plant.
He pointed out that the factory effectively contributed during the (Covid-19) crisis in feeding Algerian hospitals with oxygen, which was greatly appreciated in Algerian society.
The General Manager and CEO of Algerian Qatari Steel (AQS) added that the factory also produces materials such as limestone, which are included in the company’s sales list.
Speaking about the importance of the partnership between the two brotherly countries, he explained that the Algerian-Qatari Steel Company is the largest Arab-Arab investment in the field of steel, a partnership built on “numbers, not dreams”, as it boosted Qatari investments abroad and contributed with great success in meeting the needs of the local market in Algeria, from iron and exporting the surplus production to regional and international markets
He added that Algeria has turned from an importer to an exporter of iron, and this reflects positively on the country’s economy and enhances its orientations towards diversifying sources of income, and encourages more investments that began to flow into the country in light of the success of this Qatari-Algerian project.
He also pointed out that the factory was able to provide about 2,400 direct job opportunities as well as indirect opportunities, which contributes to advancing development in the region, in particular, and Algeria as a whole.
Regarding expansion plans, he indicated that a memorandum of understanding was signed in Qatar during February of this year, to raise production to 4 million tons.
The General Manager and CEO of Algerian Qatari Steel said the memorandum of understanding aims to study the needs of the Algerian market and the international market, and in light of its results, the factory will enter the second phase of expansion, with a production capacity of up to 4 million tons.
He noted that the signing of the memorandum came as an affirmation of the two brotherly countries’ desire to consolidate cooperation and partnership in the field of investment in the steel industry, adding that this signing opened wider horizons for upgrading cooperation frameworks in a way that enhances confidence in front of Qatari and Algerian investors to enter into partnerships and establish successful investment projects that serve the interests of both countries.
He stated that the company’s exports exceeded 200,000 tons and reached 11 countries in Africa, Asia, Europe and the United States, expecting a rise in the volume of exports in the future to achieve the desired ambitions and goals.
On the extent to which the company has benefited from the Qatari experience in the steel industry, Al Muhannadi explained that Qatar Steel International, which owns 49% of the project, provided technical support during the main stages of the design of the plant as well as during the operation phase, where specialized engineers were sent to participate in the process of building, operating and maintaining the plant as needed.
He also referred to Qatar Steel’s role in covering all the technical requirements necessary for the design of the basic and supplementary factory units, and providing technical, administrative and organizational consultancy in the various stages of the project.
Regarding the Algerian Ghar Jbeilat project to supply the factory with raw materials, he said that this project is a dream for the company, as we need 3.8 million tons of raw materials annually, and Algeria has the largest stockpile in the Middle East of these materials that need to be processed.
He added that the company took the initiative and started moving to find solutions to treat the stock in Ghar Jbeilat, and the company came to theoretical laboratory solutions and is very optimistic about applying these solutions to obtain raw materials to be used in the production process.
He stressed that if production of raw materials from Ghar Jbeilat begins, with more than 20%, this will reflect positively on the cost of production, and thus increase the company’s competitiveness in the local and international market.
On the other hand, he stressed that the company has set high controls and standards for setting up an environmentally friendly steel plant project.
He said that the partners are keen to adopt the latest developments in environmentally friendly technology that meet Algerian and international standards, and the company have strict internal standards to monitor compliance with these standards.
The General Manager and CEO of Algerian Qatari Steel (AQS) Yousef Ahmed Al Muhannadi concluded his interview to (QNA) by saying, that thanks to this success of the Algerian-Qatari Steel Company, and the high confidence in its operational work, technical progress, and meeting the highest quality standards, the company secured an important position on the steel industry map at the regional and global levels, in addition to being a catalyst towards new partnerships and sustainable strategic investments in the Algerian market. (QNA)