Luxembourg’s ArcelorMittal is in talks with the Algerian government regarding expanding the capacity of the Annaba steel plant it operates north-eastern Algeria.
News reports from the North African state say that the government wants the world’s largest steel company to increase its steelmaking capacity at the complex, but this involves a large investment.
Other reports have stated that if ArcelorMittal fail to invest properly in the facility then it could be nationalised under Algerian law.
Currently the rules call for any foreign investment to only be allowed 49 per cent of the equity of any company. ArcelorMittal own 70 per cent of the Annaba plant with the Algerian government retaining 30 per cent.
The plant has a capacity of about 2 million tonnes a year of steel and produces several products for the domestic market including hot, cold and galvanised rolled coils and sheets, wire rods and rebar.