Islamic Development Bank Evaluates $330 Million Project to Modernize El Fouladh Steel Plant in Tunisia
Tunis, Tunisia – The Islamic Development Bank (IsDB) is currently reviewing a project valued at 330 million Tunisian dinars aimed at restructuring and modernizing the El Fouladh steel plant, located in Menzel Bourguiba, Bizerte Governorate. According to reports by the Tunisian Press Agency (TAP), the primary objective is to triple the public enterprise’s production capacity, bringing annual steel output to approximately 300,000 tons.
High-Level Delegation Visits Bizerte
A high-level delegation from the IsDB traveled to Bizerte on October 19, 2026, to continue discussions with Tunisian authorities and El Fouladh management. El Fouladh’s leadership described this visit as the final stage of negotiations before the project file is submitted for review by the bank’s governing bodies.
Key Components of the Modernization Program
The proposed program includes several critical upgrades designed to enhance industrial capabilities and improve the supply of steel billets to the Tunisian market. Steel billets are semi-finished products essential for manufacturing various steel goods. Key elements of the project include:
- Installation of a pocket furnace
- Acquisition of continuous casting equipment
- Engineering studies and civil works
These investments are expected to strengthen the plant’s industrial capacity and ensure a more reliable domestic supply of steel billets.
Strategic Goals: Reducing Imports and Preserving Jobs
Beyond technical upgrades, the project aims to reduce Tunisia’s reliance on steel imports and preserve jobs linked to the enterprise’s operations. In March 2026, the Tunisian government had already included El Fouladh’s restructuring in a broader national strategy to develop the domestic steel industry and better utilize scrap steel collected within the country.
Financing Status and Next Steps
It is important to note that the 330 million dinar financing has not yet been secured. Following its mission, the IsDB delegation will prepare a report to be submitted to the competent technical committee. Subsequently, a note will be presented to the bank’s board of directors for final approval.
Extended Mission Activities
The IsDB delegation’s mission is scheduled to continue until October 23, 2026. During this period, the team will:
- Conduct site visits to El Fouladh’s facilities
- Inspect scrap steel collection sites
- Tour several private rolling mills
- Hold discussions with the National Agency for Environmental Protection (ANPE)
This comprehensive approach ensures that environmental considerations and broader industry integration are addressed as part of the modernization effort.
