QNCC is looking to hike capacity to meet 2022 construction boom


Updated Tue, 13 Mar 2012 00:00:00 GMT

Qatar National Cement Company is looking to increase capacity as the country prepares to stage FIFA 2022 World Cup, which will boost construction activities in the country.

QNCC said it will explore “new alternatives” to increase cement production capacity, which stood at 3.5mn tonnes in 2011.

The production of washed cement reached 3.6mn tonnes last year, QNCC said in a report at “Intercem Doha,” an industry conference and expo in Doha yesterday.

QNCC’s lime production, both calcined and hydrated, reached 14,400 tonnes during 2011.

Sales of all types of cement reached 3.5mn tonnes, while that of washed sand amounted to 3.9mn tonnes in 2011. Lime sales (both calcined and hydrated) stood at 12,000 tonnes in 2011.
The total value of sales revenue reached QR990mn in 2011 compared with QR1.1bn in 2010.

“The fall in the sales revenue was due to the decrease in market demand for both cement and washed sand caused by the effects of the global financial crisis and also due to the arrival of a new entrant in the domestic cement and washed sand market,” QNCC said.

Moreover, the company said, the main client for lime – Qatar Steel stopped taking the product since June 2011.

“All these collectively had an adverse impact on our sales revenue during 2011,” it said.

But QNCC said it would take all necessary steps to avoid “consequential losses” in future due to Qatar Steel stopping lime supply from the company. The company is also taking measures to increase sales volume of washed sand from its huge stock.

“The market demand for all types of cement, washed sand and both calcined and hydrated lime was successfully met by the company’s production while maintaining high quality standards and a consistent pricing of all products, thereby providing a strong support to construction activities in Qatar,” the report said.

QNCC installed a new unit with a production capacity of 250 tonnes of calcium carbonate a day in order to meet the demands of Qatar Electricity & Water Company (QEWC). The project, which ran trial operations at the end of 2011, reflects the country’s policy to source “strategic materials” internally.

The company has entered into an “extendable contract” with QEWC to supply them with calcium carbonate for 25 years.

QNCC achieved a net profit of QR445mn in 2011 compared with QR467mn the year before. Shareholders’ equity rose to QR2.3bn in 2011 compared with QR2.2bn in 2010.