The Chairman of the Board of Directors of the Libyan Iron and Steel Company (LISCO), Mohamed Al-Faqih, said that the company needs government support to raise its production to 4 million tons of iron and steel products.

Al-Faqih added, in press statements, that the company has a strategic plan for development worth $2.4 billion, which contributes to covering all the local market’s requirements for rebar, in addition to exporting abroad.

Al-Faqih explained that the company’s assets amount to eight billion dollars, and its annual profits are negligible since 2019 due to the shortage of electric power and natural gas, “and the advancement of the largest local manufacturing companies needs funds.”

He added that the electricity and gas crisis significantly affected the company’s production and caused huge losses. He stressed that the company is seeking to raise the production capacity from 1.250 million tons to 4 million tons, but this plan is currently suspended due to the instability in the country.

He stressed that the plan will provide 500 job opportunities, adding that the increase in production is directly reflected in the provision of hard currency that is spent in import operations from abroad. He stressed that opening the door for scrap export by the Ministry of Economy will negatively affect the company and the private sector companies in general.

Al-Faqih noted that there was a sudden rise in scrap prices in the local market, and explained that the company’s management had taken a decision to raise the percentage of raw materials input from scrap in electric furnaces to more than 30% in an attempt to reduce production costs, due to the high prices of raw materials in the global market, except The decision of the Ministry of Economy to open the door to scrap export was disappointing.

He pointed out that the debts of the Libyan Iron and Steel Company amounted to 700 million dinars, including accumulated debts of 500 million dinars as a result of the company’s cessation of work by order of successive governments to address the electricity crisis.