LIBYAN IRON AND STEEL GROWING IN THE FACE OF ADVERSITY
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LIBYAN IRON AND STEEL GROWING IN THE FACE OF ADVERSITY Written by Nye Longman Produced by Anthony Munatswa
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L I B YA N I R O N A N D S T E E L
Expanding locally and internationally, the steel manufacturer is a beacon of hope amid trying circumstances
L
ibyan Iron and Steel Company (LISCO), is working against the odds to help rebuild the country’s economy after the 2011 revolution and is doing so with a carefully considered strategy to expand its 60 percent iron and steel market share in Libya. The company, headed by its Chairman Dr Mohamed Elfighi, is facing the greatest challenge of its existence, yet at the same time it is pushing forward with an ambitious output expansion backed up by maintaining globally recognised standards. Operations LISCO is one of the largest industrial companies in North Africa and produces a range of iron and steel products. It is owned by the Libyan Government and employs roughly 6,800 people across its facilities; liquid steel
LISCO is owned by the Libyan Government and employs roughly 6,800 people across its facilities
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July 2015
M A N U FA C T U R I N G
LISCO is one of the largest industrial companies in North Africa
production stands at 1.5 million tonnes per year and its annual revenues stand at approximately one billion Libyan Dinars. Elfighi was frank about how stability issues had slowed the company’s operations but these had not prevented the company from looking to the future and in fact had proven to be a source of innovative thinking. He said: “Before the revolution we invested roughly one billion Libyan Dinars on a large expansion to increase annual steel production to 4 million tonnes per year. Some plants have already been finished and some are ready for commissioning but because of the situation in Libya contractors have left the sites. Now we are in negotiation with Danieli to get remote
4 Million Tonnes The Annual Steel Production Of Libyan Iron And Steel
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L I B YA N I R O N A N D S T E E L
M A N U FA C T U R I N G
assistance for delivering a new bar mill.” Iron Plant LISCO’s Direct Reduced Iron (DRI) plant comprises three production units; two of which have a potential annual output of 1.1 million tonnes while the third has the addtional capacity for the production of 650,000 tons per year of hot briquetted iron (HBI). DRI is produced by reducing various forms of iron ore billets into iron using locally available natural gas; HBI refers to a compacted version of this product, which is easy to transport and handle.
The company’s steel production is spread across two separate facilities, which allows
Steel Plants The company’s steel production is spread
SUPPLIER PROFILE
it to produce several different steel products
GONTERMANN-PEIPERS GMBH
Gontermann-Peipers GmbH (GP) was founded in 1825 and we are currently moving from the 6th to the 7th generation. The company is still 100 percent family owned and operates two plants in Siegen – Germany. In terms of roll production, GP is focused on high added value work and backup rolls up to finished weight of 265 tonne per piece with an export share of over 80 percent. To achieve this goal approximately 4 percent of the yearly turnover is spent on research and development of new grades. Every year investments of €6-8 million from of our own resources are realized to upgrade and modernize the manufacturing facilities.
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L I B YA N I R O N A N D S T E E L
LISCO is now exporting all its
across two separate facilities, which allows it to produce several different steel products. Its billets and blooms plant has an annual designed production capacity of 670,000 tonnes of liquid steel which converts to 630,000 tonnes; this was expanded in 2008 to produce one million tonnes. The plant uses three electrical arc furnaces which each have a capacity of 90 tonnes. Complementing this facility is LISCO’s steel slab plant which has an equal number of 90ton arc furnaces providing a designed annual output of 650,000 tonnes of liquid steel that converts to 611,000 tonnes per year of slabs.
products worldwide
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M A N U FA C T U R I N G
Competitive Position Operating in the eastern part of the country is extremely difficult due to security concerns, but a new threat has arisen since 2011 in the form of competition from abroad. Elfighi said: “The Libyan market is now open to imports from China, Ukraine, and Turkey; from everywhere.” Building up LISCO into a recognisable brand has proven to be a timely solution to this new problem, Elfighi said: “We are concentrating on the value and quality of our products, as well as improving costs and the delivery times. LISCO is well known for being number one for quality in Libya.” Achieving recognition has also been approached laterally, through obtaining various assurances for good governance which include ISO 14001, 9000 and 18000 accreditations. Paying attention to its brand, LISCO LISCO is well known for being number one for quality in Libya.
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L I B YA N I R O N A N D S T E E L
“Since 1998 LISCO has also been working towards a more diverse product base and has achieved this goal quite substantially” – Mohamed Elfighi, Company Chairman
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isnow exporting all its products worldwide, especially to Southern Europe, China, Turkey, and to many Arabic nations. Since 1998 LISCO has also been working towards a more diverse product base and has achieved this goal quite substantially. Forming a single plant, its galvanised coils section produces 80,000 tonnes annually, while its painted coils line stands at 40,000 tonnes. The company has an additional four mills which enable it to value-add to its steel products. Its bar and rod mill consist of two lines each producing 400,000 tonnes annually. It also produces light and medium sections of varying
M A N U FA C T U R I N G
Company Information INDUSTRY
Manufacturing HEADQUARTERS
Misrata, Libya FOUNDED
1979 EMPLOYEES
6,800 REVENUE
1 billion Libyan Dinars
sizes and dimensions through a dedicated mill with an annual capacity of 120,000 tonnes. Furthermore, its hot rolled coil production stands at 580,000 tonnes in its respective plant, while cold coil plant production has an annual capacity of 140,000 tonnes. LISCO’s path has not been the easiest, which perhaps goes to show why the company is performing so well. It is expanding in the face of encroaching imports from around the world and is doing so while some areas of the country are still unstable. As the country begins to invest in infrastructure again, the company will be perfectly positioned to grow with Libya.
PRODUCTS/ SERVICES
Iron and Steel Manufacturer
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Libyan Iron and Steel Libyan Iron and Steel Complex, Misrata, Misrata Province, Libya +218 51 2619680 +218 51 2619680 marketing@libyansteel.com www.libyansteel.com