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February 23, 2026 | 3 months ago

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Steel industry: a $500 million investment comes to fruition

The country's steel industry will soon have a new plant with a production capacity of 500,000 tons per year.

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This is the Chinese Jingdong Steel project, worth $500 million, located in the province of M'sila, where construction has reached 60% completion in eight months.

The start of production at this new plant, built on a 36-hectare site with two production units, one for steel sheets and the other for steel tubes, comes at a time when one of the world's largest iron ore deposits in Tindouf is coming into production. In this wake, and as part of a program to monitor the implementation of investments in the field, the AAPI announced yesterday in a press release the progress of this new plant, which will now be supplied with local raw materials from Gara Djebilet.

The Chinese project will be carried out in two phases: the first consists of installing a steel sheet production line with an annual production capacity of 200,000 tons. The second line will produce steel pipes with a production capacity of 300,000 tons per year.


In addition to the production component, 50% of which is destined for export, the project in question will have a significant economic impact on the region's development. Its imminent entry into the production phase will enable the creation of 1,114 jobs, a training centre to ensure technology transfer, and the use of local raw materials for the manufacture of finished products. In this sense, the AAPI presents the project's implementation progress as an example of realising major projects that have benefited from the agency's support since its establishment. “This project is a living example of the transformation of investment intentions into concrete industrial projects,” the AAPI said in its press release.

In fact, this $500 million investment project, led by the Chinese company JingDong Steel, is part of the momentum currently being experienced by the country's steel industry, driven by the start of production at the Gara Djebilet iron mine. It is in line with the national policy of local processing of raw materials from one of the world's largest iron mines.  This new plant, built at an accelerated pace, will strengthen the country's production of steel sheets and steel pipes.

Gara Djebilet, a magnet for the steel industry

Furthermore, China's Jingdong Steel is not the only company involved in the Algerian iron ore processing industry. Its project will strengthen the country's steel industry, which has already made remarkable progress in recent years, and the start of production at the Gara Djebilet mine has completely changed the game. Major international players have already expressed interest in entering the Algerian market and benefiting from the abundance of raw materials extracted from the Gara Djebilet mine, with more than 40 million tons of iron ore per year expected by 2040. Since its launch, the country's steel and metallurgical industry has continued to attract the attention of the Chinese, Malaysians, Turks, Omanis, and others. In other words, Gara Djebilet is the magnet for the country's steel industry. With an annual production capacity of 20 million tons of iron ore in 2027, the project in question is intended to meet local demand for raw materials. In the wake of this, several projects are underway to develop this wealth, particularly in the Béchar region, home to several iron ore concentrate production unit projects.

February 23, 2026 | algeria-logo

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