ArcelorMittal and Algeria agree restructuring plan
13 October 2015
ArcelorMittal, the world’s largest steelmaker, and IMETAL, a state-owned Algerian company, have reached an outline agreement on restructuring the shareholding of ArcelorMittal Algeria, ArcelorMittal Pipes and Tubes Algeria and ArcelorMittal Tébessa.
Algeria’s government wants the country to be self-sufficient in steel while ArcelorMittal has adopted a strategy of ‘asset portfolio optimisation’. Both plans, therefore, seem to fit together nicely.
ArcelorMittal will transfer its minority shareholding in both ArcelorMittal Algeria and ArcelorMittal Tebessa and its ‘majority participation’ in ArcelorMittal Pipes & Tubes Algeria. The Algerian State will control the full shareholding of these businesses, but ArcelorMittal will continue its technical support of the El Hadjar Complex development plan.
ArcelorMittal claims it has always enjoyed a strong relationship with the Algerian Government and that the new deal will reinforce the Annaba development plan and mining operations in Tébessa.
Annaba is Algeria’s second largest economic zone and forms an integral part of the country’s industrial corridor.
Tebessa is the capital city of Algeria’s Tebessa region, which is located 20km west from the border with Tunisia.
Davinder Chugh of ArcelorMittal’s group management board will enable the companies involved to play a long-term role in Algeria’s steel and mining industries. “We now look forward to supporting the Algerian government in implementing a plan that is in the interests of both the company and the country,” Chugh said.
Abdessalam Bouchouareb, Algeria’s Minister of Mines said that the agreement would help stabilise the social climate at the three companies, preserve jobs and improve profitability.