LCC Extended Management meeting, December 2019
On Thursday 19 December 2019, the 12th Extended Management Meeting took place at the Tibesty Hotel in Benghazi, with the goal of maintaining ongoing communication channels between senior and broader management in LCC.
The theme for the meeting was centred around the Budget and Objectives for the coming year 2020.
The meeting began with the CEO welcoming the attendees and presenting a comparison of current performance in 2019 against our performance for the same time last year, and, against our expectations as formalised in the Budget 2019. Despite challenging monthly targets for November 2019, LCC witnessed the highest actual monthly production and sales volumes for the year. The Year to date performance was double that of the previous year, but at the same time not as good as we had expected when compared to the Budget. This was true of the main parameters; Production volumes, Profit and Cash generation. The CEO thanked all the workers for their ongoing efforts and was optimistic that 2020 would see a significant improvement on the 2019 results.
The HR General Manager took the stage to describe the accumulated personnel liabilities of the company, which had arisen due to the war years. In 2020, LCC plans to start re-paying these liabilities, that is, outstanding employee salaries, government taxes and social security. Furthermore, additional employees will be activated as Benghazi brings another production line into full operation. The budget also re-introduces a comprehensive Health Care plan, fulfilling management’s commitment to provide modern Medical Insurance cover for their employees in-line within the company’s financial capacity.
The Operations Team presented their budgeted volumes for 2020. The overall target is to produce and sell 1.7 Million tons of cement. This puts LCC back at the pre-war level of production. Four out of six production lines will be fully operational and cement production will be underpinned by our own clinker production and purchase of other locally produced clinker.
Marketing & Sales presented an overview of the local market supply and demand. Demand has been growing at a healthy rate and we anticipate this will continue. Right now, imported cement is supplementing LCC’s production but we expect this will decline as our own production ramps up through the year. Head of the Marketing Dept. presented LCC’s share of the local market and the challenges the company was able to overcome this year, adding that LCC plans to expand market presence and return to supplying the whole eastern region of the country by opening new distribution points in more cities.
Finance GM Mr. Zaki Badran gave the audience a brief explanation of the budget and the implication for the other Division’s objectives on the financial department, emphasizing the importance of producing our own Clinker.
Finally, the audience and the company CEO enjoyed a fruitful discussion in which the broader management contributed by stressing the ongoing working circumstances and ways and means of improving their conditions. The CEO mostly agreed with their comments and re-assured them that improved performance would be returned to them with improved working conditions and employee benefits.
At the end the CEO thanked the audience for their attendance and informed them of the next meeting date.
Libyan Cement Company