Algeria, China Baowu Lay Groundwork for Strategic Low-Carbon Steel Partnership
Industry Minister Yahia Bachir discusses green hydrogen, advanced steelmaking technologies and industrial localisation with the Chinese group as Algeria seeks to revive strategic assets and deepen domestic value creation
By Dr. Hana Saada
ALGIERS — Algeria is moving towards a potential strategic partnership with Chinese steelmaking giant China Baowu Steel Group aimed at developing its iron and steel industry, with talks focusing on advanced production technologies, green hydrogen, technology transfer and the localisation of industrial capabilities.
Industry Minister Yahia Bachir chaired a meeting on Wednesday with a delegation from China Baowu comprising executives from several of the group’s subsidiaries, in the presence of representatives of China Road and Bridge Corporation (CRBC) in Algeria.
The meeting brought together the director general of Algeria’s National Ironmaking Company, alongside representatives of the Sider industrial group and Algerian Steel, underscoring the potential role of Algeria’s existing industrial assets in the proposed cooperation.
China Baowu’s participation carries particular weight given the group’s international expertise in the steel industry, including advanced technologies, industrial digitalisation, direct reduction, the production of direct reduced iron (DRI) and hot-briquetted iron (HBI), as well as green steel technologies and carbon-footprint reduction.
Green hydrogen at the centre of the industrial strategy
Discussions examined the potential deployment of green hydrogen in low-carbon iron and steel production, drawing on China Baowu’s experience in the field and Algeria’s combination of mineral and energy resources and significant potential for renewable-energy development.
The proposed cooperation is being framed around a broader industrial model based not simply on investment, but on technology and expertise transfer, skills development, industrial localisation and stronger domestic integration.
Such an approach would support Algeria’s efforts to increase the value generated from its natural resources while developing higher-value downstream industrial capabilities and reducing reliance on imported technologies and industrial inputs.
The National Ironmaking Company is expected to play a central role in this process, particularly through the development and valorisation of its industrial assets and its contribution to the implementation of the state’s strategy for revitalising the iron and steel sector.
China Baowu to submit project roadmap by September
The meeting’s conclusions will provide a basis for continuing technical and economic studies, defining the priorities and areas of cooperation and establishing a structured timetable for advancing the proposed partnership.
Under the timetable agreed by the two sides, China Baowu is expected to submit, before the end of September 2026, a final technological concept for the project, a draft memorandum of understanding on the proposed partnership and a detailed roadmap for its implementation.
The planned cooperation forms part of Algeria’s wider industrial strategy to revive strategic industrial assets, develop a more integrated and competitive iron and steel sector, increase domestic production and local-content levels, strengthen downstream industries and reinforce national industrial sovereignty.
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