In a move that reinforces China’s growing industrial footprint across North Africa, Chinese steelmaker Jingdong Steel has announced a $500 million investment to build a major steel production facility in Algeria.
The project, backed by Algeria’s Investment Promotion Agency (AAPI), will be located in the Draa Lhaja industrial zone in M’sila province, roughly 250 km southeast of Algiers © Mena Today
In a move that reinforces China’s growing industrial footprint across North Africa, Chinese steelmaker Jingdong Steel has announced a $500 million investment to build a major steel production facility in Algeria.
The project, backed by Algeria’s Investment Promotion Agency (AAPI), will be located in the Draa Lhaja industrial zone in M’sila province, roughly 250 km southeast of Algiers.
The future plant will sit on a 36-hectare site and is designed to produce 500,000 tonnes of steel products annually, including steel sheets and tubes for the booming construction and infrastructure sectors. It will be developed in two phases: an initial 200,000-tonne sheet production unit, followed by a 300,000-tonne tube manufacturing line.
What sets this project apart is its integration with local supply chains. According to AAPI, up to 80% of the plant’s raw materials will be sourced domestically—chiefly iron ore from Algeria’s own reserves.
Production is expected to be evenly split between domestic demand and exports, in line with Algeria’s strategic aim of positioning itself as an industrial hub in North Africa.
Authorities also highlight the project’s socio-economic impact: 1,114 direct jobs and around 2,000 indirect positions are anticipated, along with a vocational training center to support technology transfer in steel-related trades.
This latest investment is part of a broader shift in Algeria’s mining and metallurgy sector. The long-dormant Gara Djebilet iron ore mine in the southwest is finally being developed, thanks to Chinese-Algerian cooperation. A major railway—spanning 850 km—is under construction to connect the mine to northern industrial zones.
Additionally, a $1 billion ore processing plant is currently being built on-site by a consortium comprising China International Water & Electric Corp, Metallurgical Corp of China, and Algeria’s state-owned mining firm Feraal.
The aim: to turn Algeria into a key player in African steel and to reduce reliance on imports for strategic industries.
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