Industries Qatar gives the go-ahead to QVC for a new PVC project and award of relevant EPC contract
Doha, Qatar, 3 April 2022 – The Board of Directors of Industries Qatar (“IQ” or “the Company”; QE ticker: IQCD) has approved the award of an Engineering, Procurement, 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 plant
QVC is a joint venture between Qatar Petrochemical Company (Qapco) with 31.9% stake, Mesaieed Petrochemical Holding Company (MPHC) with 55.2% stake and QatarEnergy with 12.9% stake. Qapco is a joint venture, wherein, IQ owns 80% of the shares.
The new PVC plant’s construction is expected to be completed by mid-2025. The plant targets a nameplate capacity of 350,000 metric tons per annum of Suspension PVC (S-PVC).
The new plant will be integrated with the existing QVC facilities, located at Mesaieed Industrial City, and will source feedstock (i.e., Vinyl Chloride Monomer (VCM)) from the existing facilities. The new plant will further maximize synergies on account of efficient water & power usage; existing supply chain capabilities; while assuring sustainable operations.
Strategic realizations of the new PVC project
Being the first PVC plant in the State of Qatar, the project aims to position Qatar as a new regional player in PVC production, while reinforcing the downstream value chain. The plant will not only boost private sector industrial investments, but also provides a home-grown source of PVC and expands the economic potential of local industries.
The new PVC plant aims to meet the growing demand in the PVC-consuming industries, such as the construction industry. PVC produced at the new plant is expected to meet the domestic market demand and provide opportunities to export internationally. PVC as a product, can be handled, stored & shipped safely and seamlessly; and could be coupled with other similar products produced in Qatar to provide opportunities for optimized logistical cost structures.
The launch of a new PVC plant, with IQ’s indirect ownership in QVC, will improve IQ’s strategic positioning in the downstream sector while enhancing its shareholder value. The project aims to create a competitive and sustainable PVC production facilities, that will further consolidate IQ’s industrial output, while building strength through operational excellence and responsible growth, and diversifying its reach to newer markets.