Libyan Iron and Steel Company
Encyclopedia
The Libyan Iron and Steel Company (Lisco) is one of the largest iron
and steelmaking
companies operating in North Africa
. Based in Misrata, it is subsidized and owned by the Libya
n government. Muammar Gaddafi
officially laid Lisco's foundation stone on 18 September 1979. In 2004, the online magazine Arab Steel ranked Lisco third among the largest Arab
iron and steel companies.
, 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 (664.4 km/h) of its 412 kn (807.5 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%
Notes:
1. Capacity in Tons per year (t/yr).
In 2001, the Libyan government proposed several state-company projects for which joint ventures would be considered. This included a $20 million modification of Lisco’s electric arc furnace
as well as construction and installation of a $17 million ladle
furnace. The Government also promoted development of numerous mineral deposits, including clay, gypsum, iron, lead, salt, sodium carbonate, and stone. Additionally, projects were initiated for quarrying limestone and dolomite
and manufacturing lime and calcined dolomite for Lisco’s As Seddadah facility, 125 km southwest of Misrata. In 2004, Lisco signed a loan contract to develop LISCO I aimed at boosting capacity from 674 kn (1,320.9 km/h) of liquid steel per year to 1.1 kn (2.2 km/h). This project is the first stage to raise capacity of LISCO I and II. In 2006, Lisco initiated an ambitious project aiming to double design capacity to 2.5 million tons by further developing facilities on the 4.5 square miles (11.7 km²) plant near Misrata. Lisco signed a loan contract with one foreign partner, and the project was expected to be finalized in 2006. The Islamic Bank in Jeddah, Saudi Arabia, partially financed the project's cost, with Lisco supplying the remaining amount. On 2 April 2007, Lisco signed financing agreements with five Libyan banking institutions (Sahara Bank
, Aljamhoria, Attejari, Alomma and Alwahda) for 840 million Libyan dinars ($650 million) to execute another phase of their expansion plan. Lending his support, Libya's Secretary of Minerals and Industry, Ali Yusuf Zikri
, said the loan should help create new employment opportunities and meet increasing local demand.
In 2003, Lisco produced 835 kn (1,636.5 km/h) of long and flat products (444kt long products; 391 kn (766.3 km/h) of flat products), including 412 kn (807.5 km/h) of rebar, 391 kn (766.3 km/h) of hot-rolled coils, and 412 kn (807.5 km/h) of HBI. Production of long and flat products grew 18% in 2004; mainly rebar (460kt); hot-rolled coils (429kt) and HBI (606kt). Lisco produced over 574 kn (1,124.9 km/h) of finished products in the first half of 2005, increasing 65% over the first half of 2004. The company also increased liquid steel production 52%. Rebar
was 57.3% of finished products, hot-rolled coils was 39.3%. Sponge iron production was 579.407 tons, 348.243 tons of HBI, 376.239 tons of billets and blooms and 281.832 tons of slabs. During the first nine months of 2005, Lisco reached its highest production ever; 1 million tons of liquid steel. This was confirmed by Secretary of the Popular Committee
, Dr. Mohammad Abu Ojeila Al-Mabrouk at celebrations in September 2005 on the occasion of the passage of 15 years since the company’s mills began production, which concurs with the anniversary of the Al-Fatah Revolution in Libya. In 2005, Lisco achieved the highest rate of increase in steel production among Arab companies, which amounted to 34.8%. Its production increased by 65% in the period from January to June 2005 compared with the same period of 2004. Production of both long and flat products was 1.070 tons in 2006. Flat products achieved a new output record for the company of 564kt, 13% higher than 2005. Production of bars and rods was 26% lower than 2005. Long product sales were 642 kn (1,258.2 km/h) in 2006, a sizeable increase from 634 kn (1,242.5 km/h) in 2005, forcing the company to import 168 kn (329.3 km/h) of long products, mostly from Ukraine
.
n and Arab
countries. Higher domestic demand for rebar resulted in exports declining to 20 kn (39.2 km/h) in 2004. Exports in the first half of 2005 was approximately 384 kn (752.6 km/h); mostly HBI (54%) and flat products (31.7%). Exports fell for long products (81%), flat products (20%) and HBI (5%). This drop is due to the fact that the company stopped exporting rebar as well as a global recession, which led to a demand contraction for iron and steel products, particularly hot-rolled coils and HBI. Exports in 2006 exceeded one million tons, including 449 kn (880 km/h) of flat products. During the first quarter of 2006 Lisco increased hot-rolled coils exports by 125% and exported sponge iron for the first time.
from operating activities increased from approximately $300 million in 2003 to more than $435 million in 2004. According to Lisco's Chairman Mohamed Elmabruk, by the end of 2005, revenue had surpassed $400 million.
Iron
Iron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
and steelmaking
Steelmaking
Steelmaking is the second step in producing steel from iron ore. In this stage, impurities such as sulfur, phosphorus, and excess carbon are removed from the raw iron, and alloying elements such as manganese, nickel, chromium and vanadium are added to produce the exact steel required.-Older...
companies operating in North Africa
North Africa
North Africa or Northern Africa is the northernmost region of the African continent, linked by the Sahara to Sub-Saharan Africa. Geopolitically, the United Nations definition of Northern Africa includes eight countries or territories; Algeria, Egypt, Libya, Morocco, South Sudan, Sudan, Tunisia, and...
. Based in Misrata, it is subsidized and owned by the Libya
Libya
Libya is an African country in the Maghreb region of North Africa bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....
n government. Muammar Gaddafi
Muammar Gaddafi
Muammar Muhammad Abu Minyar Gaddafi or "September 1942" 20 October 2011), commonly known as Muammar Gaddafi or Colonel Gaddafi, was the official ruler of the Libyan Arab Republic from 1969 to 1977 and then the "Brother Leader" of the Libyan Arab Jamahiriya from 1977 to 2011.He seized power in a...
officially laid Lisco's foundation stone on 18 September 1979. In 2004, the online magazine Arab Steel ranked Lisco third among the largest Arab
Arab
Arab people, also known as Arabs , are a panethnicity primarily living in the Arab world, which is located in Western Asia and North Africa. They are identified as such on one or more of genealogical, linguistic, or cultural grounds, with tribal affiliations, and intra-tribal relationships playing...
iron and steel companies.
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 BrazilBrazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, and Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
for use as raw materials. Natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
is used to manufacture sponge iron
Direct reduced iron
Direct-reduced iron , also called sponge iron, is produced from direct reduction of iron ore by a reducing gas produced from natural gas or coal. The reducing gas is a mixture majority of hydrogen and carbon monoxide which acts as reducing agent...
and hot briquetted iron. Hot-briquetted iron (HBI) became a significant Libyan mineral
Mineral
A mineral is a naturally occurring solid chemical substance formed through biogeochemical processes, having characteristic chemical composition, highly ordered atomic structure, and specific physical properties. By comparison, a rock is an aggregate of minerals and/or mineraloids and does not...
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
Rebar
A rebar , also known as reinforcing steel, reinforcement steel, rerod, or a deformed bar, is a common steel bar, and is commonly used as a tensioning device in reinforced concrete and reinforced masonry structures holding the concrete in compression...
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
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
and Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
. The rest go to other European countries (France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
and Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
), Middle Eastern countries (Egypt, Tunisia, Morocco, and Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...
) and also to China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
. In 2003, the company produced 835kt of long and flat steel products, of which 49% was exported. Lisco also exported 339 kn (664.4 km/h) of its 412 kn (807.5 km/h) HBI production. In 2004, Lisco started exporting about 60,000 tons of HBI to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
through an Italian company called Techint. Lisco’s biggest local client is the General Company for Piping, based in Benghazi
Benghazi
Benghazi is the second largest city in Libya, the main city of the Cyrenaica region , and the former provisional capital of the National Transitional Council. The wider metropolitan area is also a district of Libya...
. The remainder goes to the private sector and petroleum companies, like the National Oil Corporation
National Oil Corporation
The National Oil Corporation is the national oil company of Libya. It dominates Libya's oil industry, along with a number of smaller subsidiaries, which combined account for around 70% the country's oil output...
. 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%
Facilities
| Facility | Location | Capacity | Commodity | Established |
|---|---|---|---|---|
| LISCO I | Misrata | (2) 550,000 Midrex' DR modules | sponge iron | 1989 |
| LISCO II | Misrata | 650,000 Midrex' DR module | Hot-briquetted iron | 1997 |
| Steel Melt Shop (1) | Misrata | 630,000 | Billets & Blooms | |
| Steel Melt Shop (2) | Misrata | 611,000 | Slabs | |
| Bar & Rod Mill | Misrata | 800,000 | Bars & Rods | |
| Light & Medium Section Mill | Misrata | 120,000 | Light & Medium Section | |
| Hot Strip Mill | Misrata | 580,000 | Hot rolled Coils & Sheets | |
| Cold rolling Mill | Misrata | 140,000 | Cold rolled Coils & Sheets | |
| Galvanizing Line | Misrata | 80,000 | Galvanized Coils & Sheets | |
| Continuous Coating Line | Misrata | 40,000 | Coated Coils & Sheets | |
| Six electric arc Electric arc An electric arc is an electrical breakdown of a gas which produces an ongoing plasma discharge, resulting from a current flowing through normally nonconductive media such as air. A synonym is arc discharge. An arc discharge is characterized by a lower voltage than a glow discharge, and relies on... furnaces |
Misrata | 1.25 mill | Liquid steel | |
Notes:
1. Capacity in Tons per year (t/yr).
Expansion & Development
Electric arc furnace
An electric arc furnace is a furnace that heats charged material by means of an electric arc.Arc furnaces range in size from small units of approximately one ton capacity up to about 400 ton units used for secondary steelmaking...
as well as construction and installation of a $17 million ladle
Ladle
Ladle may refer to:* Ladle , a serving device, typically for soup* Ladle , a foundry ladle used to carry and pour molten metal...
furnace. The Government also promoted development of numerous mineral deposits, including clay, gypsum, iron, lead, salt, sodium carbonate, and stone. Additionally, projects were initiated for quarrying limestone and dolomite
Dolomite
Dolomite is a carbonate mineral composed of calcium magnesium carbonate CaMg2. The term is also used to describe the sedimentary carbonate rock dolostone....
and manufacturing lime and calcined dolomite for Lisco’s As Seddadah facility, 125 km southwest of Misrata. In 2004, Lisco signed a loan contract to develop LISCO I aimed at boosting capacity from 674 kn (1,320.9 km/h) of liquid steel per year to 1.1 kn (2.2 km/h). This project is the first stage to raise capacity of LISCO I and II. In 2006, Lisco initiated an ambitious project aiming to double design capacity to 2.5 million tons by further developing facilities on the 4.5 square miles (11.7 km²) plant near Misrata. Lisco signed a loan contract with one foreign partner, and the project was expected to be finalized in 2006. The Islamic Bank in Jeddah, Saudi Arabia, partially financed the project's cost, with Lisco supplying the remaining amount. On 2 April 2007, Lisco signed financing agreements with five Libyan banking institutions (Sahara Bank
Sahara Bank
The Sahara Bank was established in 1964,designed by Italian Vincenzo Maria Morici.On 22 December 1970, the Revolutionary Command issued another law "the Nationalization Decision" which demanded that all the foreign banks shares were nationalized and became completely owned by Libya.Sahara Bank is...
, Aljamhoria, Attejari, Alomma and Alwahda) for 840 million Libyan dinars ($650 million) to execute another phase of their expansion plan. Lending his support, Libya's Secretary of Minerals and Industry, Ali Yusuf Zikri
Ali Yusuf Zikri
Ali Yusuf Zikri is a Libyan politician and engineer who served in the Libyan government as Secretary of the General People's Committee of Libya for Industry and Mines. He received this appointmentin January 2007 and replaced former Minister of Industry & Mines, Ali Umar al-Hasnawi...
, said the loan should help create new employment opportunities and meet increasing local demand.
Production Performance
Rebar
A rebar , also known as reinforcing steel, reinforcement steel, rerod, or a deformed bar, is a common steel bar, and is commonly used as a tensioning device in reinforced concrete and reinforced masonry structures holding the concrete in compression...
was 57.3% of finished products, hot-rolled coils was 39.3%. Sponge iron production was 579.407 tons, 348.243 tons of HBI, 376.239 tons of billets and blooms and 281.832 tons of slabs. During the first nine months of 2005, Lisco reached its highest production ever; 1 million tons of liquid steel. This was confirmed by Secretary of the Popular Committee
General People's Committee of Libya
The General People's Committee , often abbreviated as the GPCO, acted as secretaries for various Libyan ministries during the era of the Libyan Arab Jamahiriya...
, Dr. Mohammad Abu Ojeila Al-Mabrouk at celebrations in September 2005 on the occasion of the passage of 15 years since the company’s mills began production, which concurs with the anniversary of the Al-Fatah Revolution in Libya. In 2005, Lisco achieved the highest rate of increase in steel production among Arab companies, which amounted to 34.8%. Its production increased by 65% in the period from January to June 2005 compared with the same period of 2004. Production of both long and flat products was 1.070 tons in 2006. Flat products achieved a new output record for the company of 564kt, 13% higher than 2005. Production of bars and rods was 26% lower than 2005. Long product sales were 642 kn (1,258.2 km/h) in 2006, a sizeable increase from 634 kn (1,242.5 km/h) in 2005, forcing the company to import 168 kn (329.3 km/h) of long products, mostly from Ukraine
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
.
Exports
In 2003, Lisco exported 373 kn (731 km/h) of finished products (48.5% of production). 881 kn (1,726.6 km/h) of various products were exported in 2004, including 477 kn (934.8 km/h) of HBI (54% of exports) and 72 kn (141.1 km/h) of rebar. It is considered the only Arab company manufacturing this material. Flat products were 59% of exports in 2004. Europe received about 64.4% followed by AsiaAsia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
n and Arab
Arab
Arab people, also known as Arabs , are a panethnicity primarily living in the Arab world, which is located in Western Asia and North Africa. They are identified as such on one or more of genealogical, linguistic, or cultural grounds, with tribal affiliations, and intra-tribal relationships playing...
countries. Higher domestic demand for rebar resulted in exports declining to 20 kn (39.2 km/h) in 2004. Exports in the first half of 2005 was approximately 384 kn (752.6 km/h); mostly HBI (54%) and flat products (31.7%). Exports fell for long products (81%), flat products (20%) and HBI (5%). This drop is due to the fact that the company stopped exporting rebar as well as a global recession, which led to a demand contraction for iron and steel products, particularly hot-rolled coils and HBI. Exports in 2006 exceeded one million tons, including 449 kn (880 km/h) of flat products. During the first quarter of 2006 Lisco increased hot-rolled coils exports by 125% and exported sponge iron for the first time.
Domestic Sales
Lisco's sales for both long and flat products in the domestic market increased 96% during the first half of 2005. Most of this increase came from purchases of long products which grew to 329.039 tons a 10% increase on the preceding year; flat products increased 17%. During the first quarter of 2006, 145.7 kn (285.5 km/h) of rebar was sold domestically, a 9% increased compared to 1Q2005; additionally, domestic sales of hot-rolled coils increased 93 percent to 5.6 kn (11 km/h). Higher domestic sales volume reflected a growing trend in the Libyan market's demand and consumption rates for steel products, especially for rebar, which amounted to 138.6 kn (271.6 km/h).Financial Performance
Increased demand for reinforced steel in the domestic market and higher prices for steel worldwide helped to boost the profits of the Libyan Iron and Steel Company to over 100 million Libyan dinars (USD $80.5 million) by the end of 2004. The company’s return on export sales in 2003 was $165 million, it rose to $275 million in 2004 and reached $250 million by 2005. RevenueRevenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
from operating activities increased from approximately $300 million in 2003 to more than $435 million in 2004. According to Lisco's Chairman Mohamed Elmabruk, by the end of 2005, revenue had surpassed $400 million.