Libyan Iron and Steel Company - Overview

Overview

Lisco is among the largest companies in Libya, having an annual production capacity of approximately 1,324,000 tons of liquid steel. Lisco’s operations are primarily supplied by imported iron ore pellets from Brazil, Canada, and Sweden for use as raw materials. Natural gas is used to manufacture sponge iron and hot briquetted iron. Hot-briquetted iron (HBI) became a significant Libyan mineral export since the LISCO II plant began producing it in 1997. About 54% of Lisco’s exports (by weight) in 2000 was HBI. Bars and rods shipped to Egypt and Tunisia accounted for about 23% of the company’s exports. Lisco has its own captive port with specialized facilities, such as a telescopic ship-loading conveyor for loading HBI into ships. The conveying system extends from the HBI plant to the port, about 1,500 meters away.

Most of Lisco's rebar production is sold locally, with the domestic industry consuming about 25% of the company's flat steel products. Lisco exports over 60% of its product, with roughly 50% directed to markets in Italy and Spain. The rest go to other European countries (France, Greece and Turkey), Middle Eastern countries (Egypt, Tunisia, Morocco, and Jordan) and also to China. In 2003, the company produced 835kt of long and flat steel products, of which 49% was exported. Lisco also exported 339 kn (628 km/h) of its 412 kn (763 km/h) HBI production. In 2004, Lisco started exporting about 60,000 tons of HBI to the United States through an Italian company called Techint. Lisco’s biggest local client is the General Company for Piping, based in Benghazi. The remainder goes to the private sector and petroleum companies, like the National Oil Corporation. Production costs increased during 2005 due to a substantial increase in the price of imported iron ore pellets, however the price of Lisco’s final products inclined 100%