Libya’s biggest steel firm to halt output for two weeks due to power shortages

TRIPOLI (Reuters) – Libya’s biggest steel firm Lisco, which has been hit by the turmoil in the country, will halt production for two weeks due to power shortages, its chairman said.

Misrata-based Libyan Steel and Iron Co (Lisco) is one of the only companies outside the energy sector still exporting products from the North African country. Lisco has already said it would have to lower production due to power and gas shortages.

“We will hopefully resume production at the company again even before two weeks are over,” Chairman Mohamed Abdelmalik al-Faqih told Reuters. “February is the peak of low temperatures and therefore there is a large consumption of electricity.” He gave no new production targets for this year.

Libya is in the midst of a struggle between two competing governments for control of territory which has led to the closure of most oilfields and disrupted foreign trade. Oil is the main source of revenue for the country’s budget.

Last month, Faqih had said power shortages would force the shutdown of two of three gas plants. As a result, output of direct reduced iron, a key steel-making ingredient, would be just 550,000 tonnes in 2015.

This is a further decrease from last year when it had planned to produce 1.6 million tonnes, but achieved only about 60 percent of the target due to power shortages.