Lebanon - Industry

The 16-year civil war that ended in 1991 caused tremendous damage to the industrial sector. By 1993, it was estimated that the Lebanese industry suffered losses of $1.5 billion. Inadequate infrastructure and shortage of skilled labor are major obstacles in the process of rehabilitation. By 1995, the industrial sector was showing signs of improvement. Industrial exports in the first quarter of 1995 were up 76% (to $79.5 million) compared with the same period in 1994. Industry accounted for an estimated 28% of GDP in 1995. Industrial production grew at rates of3.8% in 1997 and 2.8% in 1998. In 2000, industry contributed 21% to GDP. Major industrial products are clothing, metal, food, marble and sanitary equipment, cement, jewelry, furniture, paper, beverages, and plastic. In 2002, manufacturing contributed 17% to GDP and accounted for 40% of total exports. Industrial activity is concentrated in construction material (35%); food and beverages (20%); textiles and ready-made garments (14%); and furniture (10%). The sector remains weak due to obsolete equipment, high operating costs, low productivity, and limited access to financing.

Lebanon's two main oil refineries suspended operations for most of the 1990s after 1992 but were operative in 2002. Total refinery capacity in 2002 was 42,000 barrels per day, including 38,000 barrels per day of crude oil distillation; 7,000 barrels per day catalytic cracking capacity; and 7,000 barrels per day reforming capacity.