• Jingdong Steel will invest $500 million to build a steel plant in Algeria’s M’sila province.
• The plant will use 80% local raw materials and generate over 3,000 jobs.
• Half of its output will serve the Algerian market, the rest will be exported.

The Chinese group Jingdong Steel plans to invest $500 million in a new steel plant in Algeria, according to a June 2 statement from the Algerian Agency for Investment Promotion (AAPI).

The plant will be built on a 36-hectare site in the Draa Lhaja industrial zone in the wilaya of M’sila, located 248 kilometers southeast of Algiers.

With an annual production capacity of 500,000 tons, the facility will produce a range of steel sheets and pipes for the building and public works (BTP) sector. The project will be executed in two phases: the first will establish a steel sheet production unit with a capacity of 200,000 tons per year, while the second phase will add a steel pipe production unit capable of producing 300,000 tons annually.

Designed to supply both domestic and international markets, the plant will allocate 50% of its output to each. The project is expected to create 1,114 direct jobs and 2,000 indirect jobs. It also includes a technology transfer component, with plans to open a training center for steel-related professions.

Although the AAPI did not disclose a specific launch date, it confirmed that the facility will rely on 80% local raw materials and serve as a key industrial base for steel and pipe products used in North Africa’s construction sector.

This investment aligns with Algeria’s broader industrial ambitions, including its emerging position as a major iron ore producer. The Gara Djebilet mine in southwestern Algeria is set to begin operations soon, backed by Chinese firms involved in building an 850 km railway to support ore transport. A consortium including China International Water & Electric Corp, Metallurgical Corp of China, and Algeria’s national iron and steel company Feraal is already constructing an iron ore processing plant in the region, valued at $1 billion.