DOHA: Qatar’s main cement maker, which claims catering to over 70 percent of the local demand, is gearing up to meet the growing appetite for this primary building material fuelled by the infrastructure projects.
With the operation of two new mills by the end of this year, the total cement production capacity of Qatar National Cement Company (QNCC) will be increased to over four million tonnes per annum, which will witness a nearly 12 percent jump from the existing capacity of the company.
The company’s total production (in all categories of cement) increased to 3.5 million tonnes in 2014, up nearly three percent compared to 3.4 million tonnes produced during the previous year.
“Our two new mills are scheduled to begin operation this year. The first will commence production from October 15, 2015, while, the second one is expected to start by the year-end,” said Salem Butti Al Naimi, Chairman and Managing Director of QNCC, adding, “the whole plant will start running at full capacity by early next year producing about 23,000 tonnes per day.”
Al Naimi, speaking to this newspaper on the sidelines of QNCC’s Annual General Meeting (AGM) yesterday, said: “We are expecting the demand for cement in Qatar will continue to grow in the coming years, and we at QNCC are ready to meet any surge in demand. If the market needs more than our full capacity, we are ready to import from outside.”
However, he restrained from giving any estimated peak demand for cent in the run-up-to 2022, saying: “We are not the only supplier in the market. The quantum of demand and growth rate will largely depend on the number of new projects awarded and the progress of the ongoing projects.”
He added that the demand for cement in Qatar is also influenced by many other factors, such as the weather conditions, Ramadan and summer working timings, when the demand for cement drops significantly.
Keeping in view the rising demand for cement, the company, last year, had signed a letter of intent with a French company to further boost its production capacity. The contract was signed for the construction of QNCC’s Cement Plant Line 5.
Meanwhile, earlier in the AGM, shareholders approved all the agenda of the meeting, including the Board’s recommendation to distribute dividends of QR4 per share (40 percent of the nominal value of the share) and a distribution of 10 percent bonus shares.
The shareholders of QNCC also gave the nod for the extension of the Company’s duration, which is expiring on October 8, 2015, for additional 50 years.
The company had reported a net profit of QR420.3m for the year ended December 31, 2014, which was down by nearly 3 percent compared to QR433.3m in 2013. The Earnings per Share (EPS) amounted to QR8.56 in 2014 compared to QR8.82 in 2013.
