Algeria, China Forge Strategic Industrial Alliance in Steel Manufacturing

✍️ BY: Dr. Hana Saada

JINGDONG STEEL Secures Land Concession for $500 Million Steel Complex in M’sila to Bolster National Industry and Export Capacity

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Algiers, Algeria | June 2nd, 2025 — In a significant stride towards industrial revitalization and regional economic integration, the Algerian Investment Promotion Agency (AAPI), under the stewardship of its Director General, Mr. Omar Rekkache, officially granted a land concession to Chinese steel conglomerate JINGDONG STEEL. The agreement, signed on Monday, June 2, 2025, at the Agency’s headquarters, authorizes the allocation of a 36-hectare plot within the industrial zone of Dhraâ El-Hadja in M’sila for the construction of a cutting-edge steel production plant.

This investment—valued at 500 million USD—marks a pivotal development in Algeria’s industrial landscape, positioning the country as a future hub for steel and pipe manufacturing in North Africa. The plant will boast a total annual production capacity of 500,000 tons, including 200,000 tons of steel plates and 300,000 tons of steel pipes of varying specifications, to be developed in two distinct phases.

Phase One will focus on establishing the production line for steel plates, while Phase Two will witness the installation of a state-of-the-art unit for manufacturing steel pipes, essential for the construction, energy, and water infrastructure sectors.

Crucially, the project is expected to generate 1,114 direct jobs and 2,000 indirect employment opportunities, thus injecting vitality into the local economy and contributing significantly to national employment strategies. Beyond its economic impact, the project is also anchored in knowledge transfer, with plans to establish a specialized training center dedicated to iron and steel professions—ensuring the development of Algerian technical expertise and reducing dependency on foreign know-how.

Sustainability and national resource utilization lie at the core of the plant’s design: 80% of its raw materials will be sourced locally, underscoring Algeria’s growing self-reliance in industrial production chains. Furthermore, the plant’s output will be evenly split between domestic consumption and exports, strengthening Algeria’s foreign trade balance and enhancing its industrial footprint in international markets.

The AAPI extended its deepest gratitude to the Wali of M’sila, Mr. Nejmeddine Tayar, and all local administrative bodies whose unwavering support and efficiency expedited the concession process. The Agency emphasized its unwavering commitment to ensuring the smooth and effective implementation of this strategic project, underscoring its vital role in the broader national vision for industrial sovereignty and economic diversification.

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