China Baowu Partners Algeria for El Hadjar Steel Revival
Algeria is advancing a strategic initiative to re-launch the El Hadjar steel complex, a significant national industrial asset, through a prospective technological partnership with China Baowu Steel Group. This endeavor aligns with a national vision to upgrade industrial infrastructure, increase production capacities, and bolster industrial sovereignty, thereby reducing reliance on imports. In line with these objectives, the Minister of Industry, Mr. Yahia Bachir, recently held two meetings on August 10 and 12 with a Chinese delegation, which included representatives from the China Road & Bridge Corporation (CRBC) in Algeria, along with officials from national steel entities such as the National Iron Industry Company (SNS), SIDER Industrial Group, and Algerian Steel.
The consultations have led to the establishment of a comprehensive work program aimed at further studying the project. This program encompasses technical meetings, on-site visits including an inspection of the El Hadjar complex, and coordination sessions with various relevant sectors, including mining, energy, and hydrocarbons. These steps are crucial for conducting thorough technical and economic assessments to determine the most effective strategies for the complex's development. The proposed approach focuses on modernizing production methods, improving operational efficiency, optimizing industrial assets, and developing value-added products, all while integrating El Hadjar into a holistic national iron and steel industry framework.
The involvement of China Baowu Steel Group is particularly important given its expertise in advanced iron and steel technologies, industrial digitalization, and techniques for direct reduction and low-carbon production. Discussions also explored the potential application of green hydrogen in steel production, leveraging Algeria's rich mineral and energy resources, coupled with its growing capabilities in renewable energy. This strategic move is anticipated to facilitate a gradual transition towards more competitive and environmentally sustainable production. The project's vision extends beyond mere rehabilitation of existing units, aiming to integrate the complex across the entire value chain, from processing iron ore to producing steel and developing high-value products.
The National Iron Industry Company (SNS) is expected to play a pivotal role in this transformation, contributing to the state's broader vision for modernizing the iron and steel sector and strengthening local industrial integration. Algerian authorities anticipate that this partnership will result in substantial technology transfer, the development of national expertise, the localization of industrial activities, and robust support for related processing industries, thereby increasing the national economy's added value. Both parties have agreed to continue discussions and studies according to a defined timeline, with China Baowu Steel Group slated to present its final technological proposal, a draft Memorandum of Understanding, and a detailed project roadmap by the end of September 2026. This deadline marks a key stage in defining the partnership's nature, its technical and economic elements, and the viability of the proposed initiatives before moving to advanced investment phases.
