Qatar Industries QPSC: Gives green light to QVC for a new PVC project and award of the corresponding EPC contract
FOR IMMEDIATE RELEASE
Qatar Industries gives green light to QVC for new PVC project and corresponding EPC contract award
Doha, Qatar, April 3, 2022 – Qatar Industries Board of Directors (“IQ” or “the Company”; QE Code: IQCD) has approved the award of an engineering, procurement and construction (EPC) contract for a new polyvinyl chloride (PVC) plant by its indirect joint venture; Qatar Vinyl Company (QVC), with a total contract value of USD 239 million.
QVC & the new PVC factory
QVC is a joint venture between Qatar Petrochemical Company (Qapco) with a 31.9% stake, Mesaieed Petrochemical Holding Company (MPHC) with a 55.2% stake and QatarEnergy with a 12.9% stake. Qapco is a joint venture, in which IQ owns 80% of the shares.
The new PVC the construction of the plant is expected to be completed by mid-2025. The plant is targeting a nominal capacity of 350,000 metric tons per year of suspension PVC (S-PVC).
The new plant will be integrated with the existing QVC facilities, located in the industrial city of Mesaieed, and will source raw materials (i.e. vinyl chloride monomer (VCM)) from the existing facilities. The new plant will further maximize synergies through efficient use of water and electricity; existing supply chain capabilities; while ensuring sustainable operations.
Strategic achievements of the new PVC project
As the first PVC factory in the State of Qatar, the project aims to position Qatar as a new regional player in PVC production, while strengthening the downstream value chain. The plant will not only stimulate private sector industrial investment, but also provide a local source of PVC and expand the economic potential of local industries.
The new PVC plant aims to meet the growing demand from PVC consuming industries, such as the construction industry. The PVC produced at the new plant is expected to meet domestic market demand and offer international export opportunities. PVC as a product can be handled, stored and shipped safely and transparently; and could be coupled with other similar products made in Qatar to provide opportunities for optimizing logistics cost structures.
The launch of a new PVC factory, with IQs indirect ownership in QVC, will improve IQ strategic positioning in the downstream sector while enhancing its shareholder value. The project aims to create competitive and sustainable PVC production facilities, which will further consolidate IQit’s industrial production, while strengthening itself through operational excellence and responsible growth, and diversifying its reach into new markets.
About Qatar Industries (IQ)
Qatar Industries QPSC was incorporated as a Qatari Joint Stock Company on April 19, 2003. The business activities of the company include direct share ownership in the following subsidiary and joint ventures: (i) Qatar Steel Company QPSC (“QS”), a-owned subsidiary, engaged in the manufacture and sale of steel billets and rebar; (ii) Qatar Petrochemical Company Limited QSC (“QAPCO”), ajjoint venture 80% owned by IQ, engaged in the production of low density ethylene polyethylene (“LDPE”), linear to low–high density polyethylene (“LLDPE”) and sulfur; (iii) Qatar Fertilizer Company SAQ (“QAFCO”), a wholly owned subsidiary of IQ, engaged in the manufactureammonia action and urea; and (iv) Qatar Fuel Additives Company Limited QSC (“QAFAC”), a joint venture 50% owned by IQ, engaged in the production of methanol and methyl-tert-butyl-ether (“MTBE”).
The activities of the subsidiary and the joint ventures continue to be managed independently by their respective management teams.
The companies in which QPSC Qatar Industries directly and indirectly hold investments are separate entities. In this meadows release, “IQ” and “the group” are sometimes used for convenience in reference to QPSC Qatar Industries
This press release may contain forward-looking statements regarding the financial condition, results of operations and businesses of Qatar Industries QPSC. All statements other than statements of historical fact are considered forward-looking statements, being statements of expectations. future results based on expectations and assumptions, and involve known and unknown risks and uncertainties that could cause actual results, operations and business performance or events affecting the group to differ materially from those expressed or that may be deducted from these statements.
A number of factors could affect the realization of these forward-looking statements, including: (a) fluctuations in crude oil and natural resource prices gas, (b) changes in demand or market conditions for the group’s products, (c) loss of market share and industry competitionion, (d) environmental risks and natural disasters, (e) changes in legislative, tax and regulatory conditions, (f) changes in economic and financial market conditions and (g) political risks. As such, actual results could differ materially from those indicated, or as may be inferred, from the forward-looking statements contained herein. All forward-looking statements contained in this report are made as of the date of this document.
Qatar QPSC Industries, its directors, officers, advisors, contractors and In no event shall the agents be liable for any costs, losses or other adverse effects arising out of or arising out of any party’s use of or reliance on any forward-looking statement and/or other material contained herein. Qatar QPSC Industries, its subsidiary, joint ventures and associated companies are under no obligation to update or issue revisions to any forward-looking statements or any other matters contained herein whether or not known to be has changed or is inaccurate as a result of new information, future events or for any reason whatsoever. QPSC Qatar Industries does not warrant the accuracy of any historical statements contained herein.