The structure of the industrial sector in Libya follows
the patterns of many other socialist economies. It was
developed during the three decades following the Al Fatah
Revolution and pursued the main aim of a self-sufficient
economy. Divided in big sectorial corporations (National
Textile Company, General Electronics Company, etc…),
it followed two main aims: to supply the Libyan market
with the necessary goods and to employ as many workers
as possible. Throughout the years, this strategy has created
huge debts within these companies, and the Government
has decided to put an end to this money-drain. "We
can no longer be insensitive to cost, we have to be competitive.
Quality wise, some of our companies still produce relatively
good products, but at a high cost. There are certain activities
that are and will be in the foreseeable future beyond
the reach of the private sector, for instance the petrochemicals,
the oil sector, the iron and steel production, etc. But
many others, especially in the consumer sector, will be
privatized in few years time", explains Dr. Jehaimi.
The privatisation of these companies is still in its early
stages, and it remains uncertain how this process will
be structured and implemented, but what is clear is that
the Libyan industry, strong and modern enough in certain
activities, has to be linked to the world trade and investment
flows: "In the past 33 years of the Revolution we
have just depended on ourselves to produce what we needed.
Presently, taking into consideration the new reality of
globalisation, we have to join our local production with
the international one", says Dr.
Baghdadi.
Examples of this proactive and open attitude are given
by two of the largest and most successful industrial
companies in Libya: The Libyan Iron and Steel Company
(LISCO) and the Arab Cement Company. Both enterprises,
taking advantage of their monopolistic or semi monopolistic
situation in the Libyan market have invested generously
in enlarging their production capacities and the quality
of their products, making them more appealing for future
partners.
LISCO, having secured its market locally, looks abroad.
They export more than 50% of their finished and semi-finished
products. In terms of transportation costs their natural
market is the Mediterranean region, but at the same
time they export to other countries in Africa or Asia.
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Dr.
Mohamed Elmabrouk, chairman of LISCO,
asserts proudly that they cope pretty well with international
competition: "We don't really have a problem in marketing
our products. Talking about our competitive advantages,
our quality is more than acceptable for our customers.
As a matter of fact we have obtained the ISO 9001 quality
certificate, and we also have other awards, like the European
Quality Award." But they aim further. With an already
working partnership with an Austrian steel producer, they
are looking forward two more joint ventures in their Galvanization
and Coating line and their Section Mill, always with the
same goals: "to increase the capacity, to produce
better quality and to secure markets", concludes
Dr. Elmabrouk.
The Arab Cement Company, with
72% of the market share in the cement sector, prefers
to focus on the booming local market, kick-started by
housing and infrastructure construction plans. "In
less than one year we have recovered 60% of our designed
production capacity (from 20% to 80%). Now we are working
hard to reach 100% and even to surpass it by enlarging
our current production facilities. This way we will provide
the best quality and we will satisfy the market demand",
says Mr. Mohammed Ali Sakkah,
chairman of the company. For this purpose they have already
emitted international bids for specific joint ventures.
Libya has been able to build on the achievements in
its oil industry to create a relatively well-developed
chemical industry, although it has not developed as
quickly as originally intended. Marsa El-Brega is the
country's main centre for the production of petrochemicals,
with ethanol, ammonia and urea being produced. The Marsa
El-Brega complex is operated by the National Petrochemical
Company (Napectco). There is a methanol production facility
at al-Burayqah, and a small petrochemical complex at
Abu-Kammash. This produces ethylene dichloride (EDC)
( around 104 ktpa), VCM (around 60 ktpa) and PVC (around
60 ktpa).
The complex, run by the General Company
for Chemical Industries, is looking forward an ambitious
program to increase production capacity that would require
about 250 million usd of investment. Its chairman, Eng.
Nouri Gerd, says that "we still have to take
the decision on whether the expansion would go by a partnership
or through a loan from the state or from a foreign bank.
We prefer to create a joint venture since it gives more
flexibility to the company and at the same time it gives
access to the new technology, know-how and new markets."
Ras Lanouf is the location of an as yet uncompleted project
being developed by the Ras Lanuf Oil and Gas Processing
Company (Rasco) to produce various chemicals including
benzene, butadiene, methyl-tertiary-butyl ether and butene-1.
Libya has a total of eight petrochemical plants. Two polyethylene
plants are situated at Ras Lanuf. There are plans for
the development of a major petrochemical plant there.
Completing the chemicals sector, the plastics industry
in Libya comprises polymer production, polymer processing
and polymer conversion. |
