Established in 1979, Al-Hadidi Iron Turning Factory in Mosul was well known across Iraq for its high-quality work — specialized in the production of mechanized wells and water systems. At its peak in the 1980s, the factory had customers throughout the country and employed 40 people.
Hamdi*, 49, is the factory’s current owner. He started visiting Al-Hadidi as a child, accompanying his father who established the business; now, he is an experienced mechanic with grand ambitions for the family business.
“Many families made a living through this factory, including ours,” said Hamdi.
For almost 40 years, it seemed like nothing could slow the factory’s roll -neither the conflicts of the 1980s, nor the economic sanctions imposed on Iraq in the 1990s.
Then, in 2014, ISIL arrived in Mosul.
The Al-Hadidi Iron Turning Factory lost its way while Mosul, Iraq’s second largest city, was occupied by the Islamic State of Iraq and the Levant. The factory was hit by missiles during the battle to recapture the city, and the building’s structural integrity was damaged.
The business also suffered from a loss of manpower — most of the employees left Mosul after ISIL took over. One employee, Samad, was displaced to Erbil with his family; during the fighting his house was hit by a mortar and his daughter was severely injured.
The factory remained open, but only Hamdi’s family remained.
“We were afraid that if we closed the factory, ISIL would occupy it, so we pretended we were still working at full steam,” Hamdi explained. Things got complicated when ISIL militants showed up at the factory one day, and kidnapped Hamdi's brother to pressure the family into manufacturing torture devices.
“They wanted me to produce weapons and all sorts of vile torture instruments. That was the most horrific experience of my life,” Hamdi continued. “I couldn’t leave Mosul, so I just hid from them until the city was liberated.”
ISIL requested a high ransom to release Hamdi’s brother; Hamdi and his siblings managed to collect the requested amount and secure their brother’s release.
“But my brother doesn’t know us anymore,” Hamdi lamented. “The drugs they gave him and the torture they inflicted upon him left him with severe trauma.”
When Mosul was retaken, Hamdi reopened his business, but it had lost all of its former glory. Part of the building was destroyed, none of the skilled workers had come back and, most painfully, his brother - a competent mechanic - was no longer able to work.
The International Organization for Migration (IOM) selected the Al-Hadidi Iron Turning Factory as a beneficiary of a grant through its Enterprise Development Fund (EDF) project, and Hamdi was given a USD 33,000 grant in two installments.
“This was the biggest opportunity of my life. I was feeling so low. We lost so much during the conflict; coping was not easy,” said Hamdi. “This grant helped me get back on my feet, and I feel even stronger now."
Hamdi rehabilitated the factory’s building and hired four employees with the first installment. With the second, he bought equipment and hired seven more employees.
Rehabilitation of local businesses encourages the return of Internally Displaced Persons, which is the core tenet of the EDF project. Samad, the former Al-Hadidi employee who moved to Erbil to seek medical treatment for his injured daughter, is one example.
“The reopening of Al-Hadidi factory has helped me in two ways: I returned to my home and got my job back, and now that we are here, a nongovernmental organization will be covering my daughter’s medical expenses,” Samad* said.
In addition to encouraging sustainable returns and reintegration, initiatives like the EDF boost the local economy by making high-quality local products available again, thus decreasing dependence on imports.
By investing in the private sector and enhancing local production capacity, IOM Iraq supports target sectors that have a high impact on the economic recovery and job creation. Al-Hadidi Iron Turning Factory is an example of the economic impact of EDF initiatives: the rehabilitation will positively impact the value chain connected to irrigation facilities, which were also damaged during the conflict, thus creating additional employment opportunities in the sector.
Finally, through the EDF, IOM Iraq supports the Chamber of Commerce and the Ministry of Labour and Social Affairs (MoLSA) as they help businesses comply with Iraqi labour laws and working standards relevant to the sector.
Al-Hadidi Iron Turning Factory is supported by EDF, an initiative co-funded by KfW - The German Development Bank.
* Names and some identifying details have been changed to protect the privacy of individuals.
Credits:
Story by: Sazan Gawdan with contributions from Avand Hasan/IOM Iraq
Photo credit: Hersh Yaseen/IOM Iraq
