'Inauguration of AQS affirms interest in developing investment relations'

Algerian Qatari Steel (AQS) general manager and CEO Yousef Ahmed al-Muhannadi lauded the inauguration of AQS led by His Highness the Amir Sheikh Tamim bin Hamad al-Thani and Algerian President Abdelmadjid Tebboune, saying AQS is one of the most important joint strategic investments between both countries.In an interview with Qatar News Agency (QNA), al-Muhannadi said the inauguration of the company affirms the two leaderships’ interest in strengthening and developing strategic partnerships in investment fields similar to other areas of cooperation that witness strong momentum at various levels.He emphasised that AQS is a model for successful strategic and mutually beneficial partnerships between Arab countries, adding that the company is an embodiment and practical application of Algeria’s development vision in the industrial field. It also 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 AQS’ 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 $2.1bn and joint ownership. The State of Qatar, represented by Qatar Steel International, owns 49% of the project value and 51% for the Algerian side.The company’s factory is located in the ‘Bellara’ industrial zone, in Jijel, about 375km east of Algiers, and extends over an area of 216 hectares, in addition to an area for incubating facilities for transporting and transferring raw materials at the level of Djen Djen port, which has an area of 10has. The factory also includes 60 individual buildings, 10km of internal railway lines, and 23km of roads linking the facilities, as it is an integrated industrial complex.Al-Muhannadi said the construction of the plant was completed in 2020, but the conditions of the Covid-19 pandemic delayed the official opening. He said it is fortunate that this joint Algerian-Qatari project will be inaugurated in conjunction with the Arab Summit hosted by Algeria.He said the factory, which started actual production in 2017, has a current production capacity of 2mn tonnes annually of rebar and iron wire. A study is underway to raise production to 4mn tonnes annually. Last year, al-Muhannadi said the factory witnessed the entry of a direct reduction unit with a production capacity of 2.5mn tonnes 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 3.8mn tonnes 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.During the QNA interview, 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 said the factory effectively contributed during the pandemic in supplying Algerian hospitals with oxygen, which was greatly appreciated in Algerian society. Al-Muhannadi said the factory also produces materials, such as limestone, which is included in the company’s sales list.On the importance of Algeria-Qatar partnerships, al-Muhannadi said the Algerian-Qatari Steel Company is the largest Arab-Arab investment in the field of steel and 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 orientation 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.Al-Muhannadi said the factory was able to provide about 2,400 direct job opportunities, as well as indirect opportunities, which contribute to advancing development in the region, in particular, and Algeria as a whole. On expansion plans, al-Muhannadi said a memorandum of understanding (MoU) was signed in Qatar in February this year to raise production to 4mn tonnes.He said the MoU aims to study the needs of the Algerian and international markets. In light of its results, the factory will enter the second phase of expansion with a production capacity of up to 4mn tonnes.Al-Muhannadi noted that the MoU signing affirms the two brotherly countries’ desire to consolidate cooperation and partnership in the field of investment in the steel industry, adding that the MoU 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 said the company’s exports exceeded 200,000 tonnes, reaching 11 countries in Africa, Asia, Europe, and the US. A rise in the volume of exports is expected 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 specialised 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 organisational consultancy in the various stages of the project.Regarding the Algerian Ghar Jbeilat project to supply the factory with raw materials, he said the project is a dream for the company, citing the need for 3.8mn tonnes of raw materials annually. Algeria has the largest stockpile in the Middle East of these materials that need to be processed, he noted.Al-Muhannadi said the company took the initiative and found solutions to treat the stock in Ghar Jbeilat. 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 markets.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 the partners are keen to adopt the latest developments in environmentally friendly technology that meet Algerian and international standards, and the company has strict internal standards to monitor compliance with these standards.