(MENAFN- The Peninsula) QNA
Algiers: The Qatari-Algerian relations witnessed great growth and development at all political, economic and social levels over the past decades, emphasising the deep-rooted ties between the two brotherly countries. These distinguished bilateral relations were embodied in one of the largest joint ventures in Africa and the world, which is the Algerian Qatari Steel (AQS) company.
Established in December 2013, the Algerian Qatari Steel (AQS) is a joint venture in which Qatar, represented by Qatar Steel International, owns 49 percent, and the Algerian side owns 51 percent. The project has a production capacity of 2 million tons annually.
The AQS has achieved remarkable growth since its establishment, especially after it received all 11 units of the company's factory (three rolling units, two electric furnaces units, direct reduction unit, lime production unit, industrial gases production unit, reception and transport of raw materials unit, water treatment unit and electric power conversion plant). The company continued to prove its great resilience, strengthening its presence in the Algerian market and expanding its customer base.
With aim of bolstering further this strong growth, the AQS developed a comprehensive business strategy to diversify its products. Currently, the company produces building iron, iron wire coils, reduced iron, iron slabs, lime, and by-products. It also aims to strengthen its technical and competitive capabilities to achieve local sufficiency in iron and contribute to diversifying exports in the non-hydrocarbon sector.
In exclusive statements to Qatar News Agency (QNA), Deputy General Manager of the Algerian Qatari Steel Sofiane Chaib Setti said that after the company effectively entered service by receiving the first rolling unit in 2017, the main objective of the company was to meet the internal demand for rebar and coils of iron wire which used to put a great burden on the country's treasury due to importing large amounts of these materials from abroad. The company also aimed at diversifying other products to meet the requirements of the market, because achieving self-sufficiency in the national market has been the company's major and essential goal.
In 2020, the company adopted the Algerian government's strategy which aims to raise the share of Algeria's exports in the non-hydrocarbon sector by exporting the surplus of its products to various global markets, As a result, the exports of the Algerian Qatari Steel saw a significant increase, thanks to high-quality products and the facilities provided by the national authorities to increase exports to world markets, registering a significant rise in exports exceeded 50 percent, the AQS Deputy General Manager said.
In 2021, the main goal of the Algerian Qatari Steel was accomplished after the Algerian market achieved self-sufficiency in rebar and iron coils for the first time in its history, he added.
Meanwhile, the AQS Deputy General Manager noted that the company was able to export 100,000 tons of iron products in the first four months of 2022, with a value of $75m; adding that the Algerian Qatari Steel aims at exporting between 250,000 tons to 300,000 tons of iron products, to achieve between 220 and 250 million dollars in revenue by the end of 2022.
Thanks to the high-level competencies in the Algerian Qatari Steel, as well as its technological and human capabilities, the company will be able to raise its production capacity in the near future, especially since the company owns the latest modern technology used in the steel industry, which is based on conserving the environment, he stressed.
He noted that the company's direct reduction unit, which is considered the largest in the world, was established using the latest advanced technologies, allowing the production of a high-quality reduced iron with a purity of more than 94 percent, while reducing the cost of production by saving energy and preserving the environment.
At the end of his statements to QNA, Deputy Director General of the Algerian Qatari Steel Company Sofiane Chaib Setti affirmed that the company aspires to continue meeting the needs of the national market with its diverse and high-quality products while boosting its exports, especially with the launch of the Gara Djebilet mine project, which will contribute to reducing the cost of raw materials, hence reducing the cost locally and increasing competition in foreign markets. The company also eyes partnership to exploit and enrich iron ores to use them as raw materials that cover the needs of the factory, and export the surplus in the future.
Gara Djebilet mine in southwest Algeria is one of the largest in the world with reserves estimated at more than 3 billion tons, of which 1.7 billion tons are exploitable. The mine will enable the production of 2 to 3 million tons of iron ore in the first phase (2022-2025), then 40 to 50 million tons annually from 2026 onwards.