Algiers – A Saudi Arabian company has been awarded a significant contract valued at $93 million as part of Algeria’s ambitious ‘Baladna’ milk production project. The deal underscores the growing economic ties between Algeria and Saudi Arabia and highlights Algeria’s commitment to bolstering its domestic food security.
Zamil Steel Construction Industries, a subsidiary of Advanced Construction Industries Company listed on the Saudi stock market, has signed an agreement worth 348.65 million Saudi Riyals (approximately $93 million) to design, manufacture, and supply steel structures and insulated panel cladding for the project in Algeria.
The contract was officially awarded on December 18, 2025, and forms part of the initial package of contracts dedicated to the implementation of a key component of the strategic ‘Baladna’ project in Algeria. The project is a strategic investment in Algeria’s food security sector, with the goal of establishing a major industrial facility for the production of powdered milk. This initiative aligns with the Algerian authorities’ efforts to strengthen local production and reduce reliance on imports of essential food items.
Under the terms of the agreement, Zamil Steel Egypt, a regional branch of the company, will be responsible for the design, manufacture, and supply of all steel structures required for the project. They will also oversee the installation of cladding using advanced insulated panels. The contract involves three primary parties: Zamil Steel as the contractor, Elegancia for Iron, a Qatar-based company, as a partner in the contract, and ‘Baladna’ Algeria as the project owner.
The value of the contract demonstrates Zamil Steel’s capacity to compete effectively in regional markets and execute large-scale industrial projects. The project is expected to significantly contribute to Algeria’s efforts to achieve self-sufficiency in milk production and reduce its dependence on foreign imports. The move will boost the local economy and create jobs for Algerians.
The Algerian government views the ‘Baladna’ project as vital to its long-term food security strategy, emphasizing the importance of partnerships with international companies to achieve its goals.
