An agreement was signed last Sunday (21 January) in Istanbul to establish a Libyan-Turkish Company for Petrochemical Industries to build a factory to produce bitumen / asphalt.
The agreement was signed by Khalifa Al-Shaibani, Chairman of the Board of Directors of Libya Oil Company (part of LAIP), as a first party, Mohamed Siraj Dogramasi on behalf of Royal Energy Company as a second party, and Ron Kuperberg on behalf of the American company Basic Equipment, which manufactures factory machinery, as a third party.
The signing ceremony took place in the presence and blessing of Mustafa Abu Fonas, Chairman of the Board of Directors of the Libya Africa Investment Portfolio (LAIP), and Emin Çakmak, Chairman of the Union of Turkish Companies Investing in Africa.
LAIP reports that the aim is for the factory’s production capacity to reach 500 tons per day, and for the factory to be ready to enter the production stage within a maximum period of one year. It is expected that the process of manufacturing machinery and equipment in the American city of Houston will take about 7 to 8 months, and it will take about 7 to 8 months for it to arrive from America to Libya.
It also reports that this month, in parallel, the necessary civil construction for the factory headquarters will be completed, which will be built on an area of up to 3 hectares to ensure it accommodates any future expansions. The installation process and operating trials will take about 3 months.
Diversification of LAIP revenues
LAIP says the agreement comes within the company’s efforts to diversify its activities and search for opportunities that would increase its revenues, especially in various manufacturing fields such as the bitumen industry and the manufacture of various motor oils. It says the project has the support of its owners LAIP and Ola Energy Holding Company (the rebranded Libya Oil petrol stations sector).
LAIP said this agreement is also considered one of the steps in the development of Libya Oil that it has been witnessing in the recent period, in addition to the projects to develop the petrol stations owned by the company in accordance with international standards, which will begin in the near future.
The LAIP said its hope that this factory will cover an important aspect of the Libyan market’s needs for these products necessary for road construction and maintenance projects that the country is witnessing on a large scale during this period.
