Displaying items by tag: Libyan Cement Company

Libya: The Libyan Cement Company (LCC) says taxes, poor weather and local fighting have hampered its progress over the last year. The introduction of a 183% Foreign Exchange Tax in the last quarter of 2018 has tripled the price of imported spare parts, supplies and capital goods. This has delayed repairs to the cement producer’s plants. However the company believes that the tax may be lowered in the near future. A long and wet winter has also been blamed for reducing the demand for cement and reducing the company’s cash flow.

Fighting in Tripoli has affected the LCC’s operations in the east of the country with multi-month long interruptions to the supply of raw materials. It said that key roads have recently been re-opened following negotiations relieving the situation and that it hopes they will stay open.

The company said that it is still working towards a Euro200m upgrade project to its plant in Benghazi. The plan is to increase the unit’s production capacity to 3Mt/yr from 2Mt/yr.

Libya: The Libyan Cement Company plans to spend Euro200m on an upgrade to its plant in Benghazi. The project will increase the unit’s production capacity to 3Mt/yr from 2Mt/yr at present. Planning is at an advanced stage, with tenders already issued for the engineering, procurement and construction (EPC) of a mixture of new and upgraded facilities. The Central Bank of Libya, other banks and other investors will supply finance for the project.

The cement producer reopened its Benghazi plant in late February 2019. It has over 1000 employees with more openings to follow.

Libya: British consultants on behalf of the Libyan Cement Company have met with the Benghazi Mayor Abdelrahman Al-Abaar in order to help restart two cement plants in Benghazi and Hawari. Work is due to commence on removing land mines from the sites as well as an assessment of damage caused to the units from fighting that took place in 2016, according to the Libya Herald newspaper. The Libyan Cement Company announced that it was going to reopen the plants in May 2017.

Libya: The Libyan Cement Company (LCC) plans to rebuild and reopen two cement plants in Benghazi and Hawari. Ahmed Ben Halim, the chairman of parent company Joint Libyan Cement Company (JLCC), said that the priority was getting the plants near Benghazi operational again, according to the Arab Times newspaper. The plants closed in mid-2014 and remained under militant control until mid-2016.

Unfortunately, the plants were damaged in fighting in 2016. Following a survey LCC says that extensive rebuilding will be required and this may take up at least one year. Repair work will be covered by the company’s Political Violence Insurance policy with Lloyds of London.

LCC is 90% owned by the JLCC, a joint venture between Asamar Libya and the Economic and Social Development Fund. Asamer Libya was purchased in 2015 from Asamer by Libya Holdings Group, a company run by Ben Halim. LCC also operates a third cement plant at Derna that has remained operational throughout the conflict.

Libya: The Libyan Army’s spokesman Colonel Ahmed Mismari says that the Libyan Cement Company hired contractors from the Russian security company RSB Group to clear mines at its Benghazi plant, according to Russian Sputnik news agency. The clarification came in response to reports by Reuters that regional leader Khalifa Haftar had hired the contractors directly. Libyan Air Force Brigadier General Mohammed Manfour confirmed to Sputnik that Libya had no contracts with Russian private military companies. He added that the Libyan cement company had an agreement with a British insurance company that required it to clear the plant from mines, explosives and other remnants of military operations.

Libya: Libya Holdings Group (LHG) is to acquire a majority stake in Libyan Cement Company through a special purpose acquisition vehicle. The LHG sponsored vehicle will acquire a controlling interest in Libyan Cement Company from QuadraCir Group (QuadraCir). It is anticipated that the acquisition will close by 30 April 2015. The transaction will be funded by LHG, using its existing cash resources, together with some of the leading families and industrial companies in the Gulf Cooperation Council region as co-investors.

Libyan Cement Company is the oldest cement company in Libya, has a significant market share in the Libyan cement market, and is the only producer of cement in eastern Libya. Under the terms of the acquisition, LHG and its co-investors intend to invest in the cement producer to stabilise operations and increase cement production capacity to over 3Mt/yr. The investment is targeted to meet the demand for cement in eastern Libya which is reliant on imports.

"We are very pleased to have been able to execute this transaction in a complex environment, retaining operational continuity for the cement company and at the same time securing its long-term growth potential which will benefit the Libyan economy," said Ahmed Ben Halim, Founder and CEO of LHG.