Baosteel, Algeria’s SNS Explore Green Steel Plant Cooperation
Algerian state-owned steel company SNS and China's Baoshan Iron and Steel Group (Baosteel) are exploring cooperation for an integrated steel project focused on green steel production in Algeria. The potential initiative encompasses the entire steel value chain, from iron ore reserve evaluation, mining, and processing to the final production of high-value-added steel products, alongside efforts to reduce carbon emissions. Discussions between the two entities recently covered the feasibility of this comprehensive project.
During the discussions, Baosteel showcased its technological capabilities in producing direct reduced iron (DRI) and hot briquetted iron (HBI), in addition to presenting solutions for industrial digitalization aimed at enhancing steel production efficiency and competitiveness. Representatives from China also visited the existing steel plant and port facilities in Annaba, Algeria, to assess current production and logistics infrastructure for potential future integration. Broader areas of cooperation include expanding green steel production within Algeria, facilitating technology and expertise transfer, localizing industrial activities, and strengthening the local industrial base.
While specific agreements or investment decisions have not yet been formalized, both parties are committed to continuing technical, industrial, and economic consultations. These ongoing discussions aim to establish a joint roadmap and identify priority areas for collaboration. This exploration comes as Algeria experiences expanding steel demand, projected to reach between 4.2 and 4.6 million tons this year, primarily driven by the construction sector, particularly housing, which accounts for 70-72% of total steel consumption.
Local observers anticipate that the realization of this cooperation into an actual project could significantly expand Algeria's domestic steel industry value chain. Such a development would cover the entire process from securing iron ore raw materials to green steelmaking and the production of high-value-added steel products locally, contributing to the nation's industrial development.
