✏️ BY: Dr. Hana Saada
Algiers, Algeria | June 11th, 2024 — Tosyali Algeria, situated in Bethioua, Oran province, has unveiled the initial phase of its plant expansion, with completion slated in the near future.
After the flat steel production plant’s launch last May, Tosyali Algeria’s Director of Foreign Trade and Investment, Ramzi Azzi, revealed plans for additional production units in the upcoming months. Azzi, speaking on public television, outlined the ongoing launch of various units, including the Direct Reduction Iron (DRI) plant set to commence operations in July. Additionally, the hot and cold rolling mills unit is scheduled for launch in August, alongside the flat iron cutting unit expected to start production in September. Azzi emphasized that the latter would facilitate small and medium-sized enterprises’ utilization of this product across various industries.
To support the expansion and diversification efforts, Tosyali Algeria has committed an investment ranging from $120 to $150 million. The initiation of production in this new unit is anticipated to save Algeria over $60 million in foreign currency annually, as per company officials.
The unit will specialize in producing high-end steels like flat steels, hot and cold rolled steels, and galvanized steel, catering to industries such as automotive, household appliances, and shipbuilding, thereby increasing their integration rate.
With the introduction of the electric arc furnace, boasting a production capacity of 230 tons, the Oran complex is now equipped to introduce multiple high-quality steel products to the market.
The completion of all phases of the plant’s extension project is poised to ramp up the company’s production volume and bolster revenue from complex exports, fueled by the introduction of high-value-added products to the international market.
According to Tosyali Algeria’s Director of Foreign Trade, the smelting unit’s operation at the end of May will augment pig iron production from 3 to 5 million tons, diversifying the company’s product range. This includes flat iron production, addressing local market demands, and boosting complex exports to an annual $2 billion.
Exports from the complex are primarily targeted at European Union countries, given their burgeoning demand for such products, indicative of their advanced industrialization.
Tosyali currently consumes 4 million tons per year of iron ore for steel production, pending the Bechar production unit’s commissioning, which will double the consumption to 8 million tons annually. The complex’s long-term objective is to achieve 80% of steel production from local iron ore.
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