The Libya Africa Investment Portfolio (LAIP) said that it has signed an agreement, establishing a Libyan-Turkish company for petrochemical industries.
The agreement, signed in Istanbul, aims to construct a plant to produce bitumen, a crucial component of asphalt production.
The agreement was signed by Khalifa Al-Shibani, Chairman of the Board of Libya Oil Company, as the first party, Mohammed Siraj Doghramachi representing Royal Energy Company as the second party, and Ron Kuperberg on behalf of Bazk Equipment, the American company manufacturing the plant’s machinery, as the third party.
Present at the signing were Mustafa Abufnas, Chairman of the Board of LAIP, and Amin Shakmak, President of the Union of Turkish Companies Investing in Africa.
The plant is expected to have a production capacity of 500 tons per day, becoming operational within a maximum of one year. The manufacturing of machinery and equipment in Houston, USA, is estimated to take approximately 7-8 months.
Simultaneously, the civil construction for the plant’s headquarters, covering an area of up to three hectares for future expansions, will be completed. The installation and trial operations are expected to take around three months.
LAIP said that this agreement is part of the company’s efforts to diversify its activities, and explore opportunities to increase revenue, particularly in various manufacturing sectors such as bitumen and various engine oil productions. It is an investment supported by the unique characteristics of the company and the backing of its stakeholders, represented by LAIP and Oula Energy Holdings.
Additionally, this agreement signifies a developmental step for the company, aligning with its recent projects to upgrade fuel stations to international standards, which will commence soon.
LAIP expressed hope that this plant will cover a significant portion of the Libyan market’s essential needs, crucial for the widespread construction and maintenance projects in the country.