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 Libyan government. Lisco's foundation stone was officially laid on 18 September 1979. In 2004, the online magazine Arab Steel ranked Lisco third among the largest Arab 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 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 of its 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%
Facilities
Notes:1. Capacity in Tons per year (t/yr).
Expansion and development
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 of liquid steel per year to . 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 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.