LCC held its Board and General Assembly meetings
On July 24th 2019 the LCC convened its second Board Meeting and first General Assembly meeting for the year 2019. For the first time in five years the meeting was held on LCC premises.
We are 7 times better than we were 4 years ago the chairman, Mr Ahmed Ben Halim, said addressing the members and for that we thank the management and LCC employees for their continuous efforts and determination despite of the difficult circumstances that the company had to work its way around up to nowadays. We are all part of this achievement the chairman proudly concluded in his opening words.
Director, Dr Abdussalam ElBadri, endorsed these comments and went on to praise the achievements of Staff and Management in the recent period.
The LCC CEO, Mr Bob Solomon, thanked the shareholders on behalf of the company and employees in return for their support and patience. He went on to speak of three primary events had hindered our progress in the past 12 months.
First: the imposition of a 183% Foreign Exchange Tax in the last quarter of 2018. This tripled the price of all imported spare parts, supplies and capital goods desperately needed for restoring production capacity in the Company. Inevitably it delayed the repairs to machinery and equipment and so delayed the return of hundreds of workers to productive employment. There are signs that the tax might be lowered in the near future and if so it will have a positive effect for our business.
Second: it was a long and wet winter this year. Demand for cement was drastically reduced for an extended period and this further harmed LCC’s cash flow position. Such an event is not in our control, and we think the likelihood of it occurring again this coming winter is low.
Third: the fighting in Tripoli has had flow-on consequences to our operations here in the East. The supply of much need raw materials was interrupted for a numbered of months because of the fighting. The roads have been re-opened in recent days after much negotiation and we must hope that they stay open.
Despite these significant obstacles we see signs that improvements are on the way and are optimistic for the coming period. Accordingly, we are taking strong steps towards the future with a 200M Euro investment project that is in a very advanced stage of planning. This investment will increase production capacity from around 2 Million tons of cement per year to over 3 Million tons per year. Our aim is to make this industrial edifice a major keystone in Libya’s reconstruction.