Lebanon Businessnews News

Industrialists bidding
to manage Iraqi factories
Iraq’s Government showing clear interest in involving Lebanese
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Lebanese industrialists have the opportunity now to invest in rehabilitating and managing Iraqi factories owned by the public sector, which had been closed or had their production halted for the past several years. More than 33 factories are open for private management.

Fadi Gemayel, Chairman of the Association of Lebanese Industrialists (ALI), said: “The Iraqi Government has shown interest in involving Lebanese industrialists in the management of these factories.”

The Iraqi Government launched the tenders and set the terms of reference for each factory. Deadline for participating in the tenders is November 15, according to a statement issued by the Embassy of Iraq in Beirut.

These factories include heavy and light industries, such as food industries, mainly vegetable oils and sugar, as well as paper and cardboard, rubber tires, fertilizers, aluminum, cement, natural gas, pharmaceuticals, and textile industries.

Gemayel said that industrialists have the financial abilities and expertise to participate in these tenders. “Industrialists have proven their ability to manage their facilities in risky and unstable security situations,” he said.

According to Gemayel, most of the Iraqi factories are massive and require big investments.

Saad Oueini, Director General of ALI, said that the organization has circulated Iraq’s request to local industrialists. He said they should submit their applications to Iraq’s Ministry of Industry. The Iraqi Embassy in Beirut said that it is receiving many requests for information and Terms of Reference.

High officials from the Ministry of Industry and ALI, including Minister Hussein Hajj Hassan and chairman Fady Gemayel, as well as representatives of several syndicates visited Iraq last week to strengthen relations with the Iraqi Government and to work on increasing exports to Iraq and improving bilateral business relations.

Exports to Iraq stood at $250 million last year, compared to $275 million in 2013, according to Customs. It represents around eight percent of total exports. The shipping line to Umm Qasr Port in Iraq will be reactivated andmore than two ships will be operating every week. Previously, only one trip used to move every two weeks.
Reported by Rania Ghanem
Date Posted: Nov 05, 2015
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