Libyan Iron & Steel Company (Lisco) hopes to retender a number of projects in 2014 to resume its plans to expand iron and steel production at its Misrata complex to more than 4 million tonnes a year (t/y).

“We are in early talks with some companies, but we hope to start serious discussions and invite firms for engineering, procurement and construction in 2014”, says Mohamed Elfighi, the company’s chairman.

Lisco launched a two phase expansion of the Misrata steel complex in 2004, which would eventually take production up to 4.16 million tonnes a year (t/y), from about 1.7 million t/y in 2010, with the first phase beginning in 2008.

“The original plan was to reach around 4 million b/d by 2015”, says Elfighi.

In 2010, almost half the Misrata plant’s production was used domestically and the remainder exported. Production was disrupted by the Libyan civil war in 2011 and only resumed production in June 2012.

With the construction projects market on the verge of a major boost as Libya’s economy opens up, steel consumption is set to rise. Before the Libyan civil war, the country was experiencing annual growth of roughly 7 per cent, a figure which is expected to be even higher in the post-war build out.

“At the moment it is very difficult because of our financial situation following the revolution. It is not yet back to normal”, says Elfighi.

Italy’s Danieli was awarded the main equipment supply contract for a new bar rolling mill with a capacity of 750,000 t/y. In addition to a civil works contract which was awarded to Ferretti International, also of Italy, the plant was to cost $260m, but was put on hold in 2011.

These projects included upgrading the wire and rod mill to reach a capacity of 600,000 t/y, adding a new 200,000 t/y cold mill stand and a 800,000 t/y steel reinforcement bar mill. Phase one also included infrastructure projects, such as the dredging of the Misrata port to receive ships of up to 150,000 deadweight tonnes and the extension of the port berths from 300 metres to 1,092m.

Phase two projects are still under study. These include a new direct reduction plant, the revamp of other plants and addition of new utilities. In total, the two phases could be worth as much as $3bn.