INTERVIEW
CONTACT DETAILS:
Mr. Hamad Al-Mrwany
Name
Title
PR Manager
Company
Qatar Fertilizer Company SAQ
(“QAFCO”)
Telephone Number
(974) 422-8591
Fax Number
(974) 477-0119
Document Reference
For Immediate Release
DOCUMENT DETAILS:
QAFCO/PR/100630 Eng.DOCX
June 30, 2010
AL-BAYAN NEWSPAPER INTERVIEW
QAFCO’S GENERAL MANAGER
DOHA, QATAR – Mr. Khalifa Abdullah Al-Sowaidi, the Managing Director of
Qatar Fertilizers Company (“QAFCO”) stated that the State of Qatar is one of
the largest ammonia and urea producers and exporters in the world, adding that
QAFCO has witnessed and still witnesses remarkable expansions, and has become
the largest single site producer of urea in the world with an annual production
capacity of approximately 3 million tonnes.
He pointed out that QAFCO’s
annual production of ammonia is around 2 million tonnes, mentioning that the
company exports the ammonia and urea to more than 35 countries and it heading
to become within the few years ahead the largest single producer of ammonia and
urea in the world.
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At the beginning of his speech on the objectives of QAFCO’s inception, Mr. AlSowaidi said that Qatar’s wise leadership has geared its efforts towards the
opening of new industrial and commercial channels which will help diversify
national income sources.
The government has thus identified the country’s
abundant natural resources and instructed utilizing the same in synchronization
with international practices and standards. QAFCO was therefore established in
1969 for producing and marketing urea and ammonia in response to the above
orientation and to benefit from the huge resources of natural gas, which Qatar
enjoys. The sector of chemical fertilizers is the second most important after gas
sector. A proof of this status is the emergence of new investment activities in
progress in the fertilizers sector in Qatar with an approximate invested capital of 4
billion US dollars. By virtue of its high quality and purity, which is rarely found in
the products of other countries, QAFCO products are on very high demand in
the international market. In return, and after the maturity, which characterizes
our production processes, we are currently producing and exporting the raw
material. This is a sensitive and advanced stage that reflects the government’s
concern with availing all inputs required for developing the industry and hiking
the level of quality production. The company is forecasting to achieve an annual
profit similar to or slightly higher than what it achieved in 2009 when its profit
reached 1.7 billion QR.
It is worthy mentioning that QAFCO is a Qatari shareholding company created as
a joint venture to produce chemical fertilizers. QAFCO’s shares are divided as
follows:
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Industries Qatar (“IQ”)
Yara Netherland
Qatar
75%
the Netherlands
25%
IQ is the main shareholder in QAFCO and it is a company owned by QP, which
hence becomes the major shareholder in QAFCO.
In his speech, Mr. Al-Sowaidi explored the main stages, which QAFCO went
through since its inception to its present day status. In this context he said:
“QAFCO inaugurated its very first plant and production units in 1973 with a daily
design capacity of 900 tonnes of ammonia and 1000 tonnes of urea. At present,
QAFCO’s complex contains four trains: QAFCO 1 (1973), QAFCO 2 (1979),
QAFCO 3 (1997) and QAFCO 4 (2004). Each train consists of two production
lines, one for producing urea and the other for ammonia.
Being very keen to implement the best practices and modern technology, carry
out plans which will ensure achievement of the targeted growth, we have tailored
strategic scientific plans, made qualitative achievements in terms of enhancing
production capacity, production volume and competitive quality of our products.
These achievements brought QAFCO to the height of largest ammonia and urea
producers and exporters in the world, especially after the completion of QAFCO
4, which made the company the largest single producer of urea with an annual
production capacity of 3 million tonnes in addition to its production of 2 million
tonnes of ammonia annually. We also envisage finalizing two expansion projects;
QAFCO 5 and QAFCO 6. With the completion of QAFCO 5 in 2011 the overall
annual production capacity of the company will nearly jump to 3.6 million tonnes
of ammonia and 4.2 million tonnes of urea. At this level QAFCO will become
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the world’s largest single site producer of ammonia and urea after it occupied the
position of biggest producer of urea with the completion of QAFCO 4 in 2004.
The completion of QAFCO 6 in 2012 will mark an unprecedented event with
regard to the company’s production capacity of urea which will reach 5.5 million
tonnes annually.
This will strengthen the position of the company in the
international market of fertilizers.”
As to the markets targeted by QAFCO, Mr. Al-Sowaidi says:
“Our products enjoy high quality, Qatar is known for its strategic geographical
location and its government provides all facilities, highly efficient production
services, trust, commitment and punctuality in supply. This package of features
has accelerated the company’s growth, making it a major producer and exporter in
the international markets. QAFCO exports ammonia and urea to more than 35
countries. Ammonia is exported to markets such as India, Jordan, South Africa,
North Korea and the USA. Urea is exported to markets in Africa, Australia and
North and South America. QAFCO’s products of ammonia and urea have a
special importance in these markets because of their purity and high quality.” Mr.
Al-Sowaidi adds: “After becoming at present the world’s largest single site
producer and exporter of urea along with a wide distribution network, QAFCO is
preparing at present to become the world’s largest single producer and exporter of
ammonia and urea together within the coming few years. As mentioned earlier,
this target will be achieved after the completion of the two expansion projects
QAFCO 5 and QAFCO 6 and after arriving to the production levels, which I
cited previously. At this level our international marketing exposure will become
wider and booming and our company will take up an internationally leading
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position. QAFCO’s products are ammonia and urea in its two forms; granules
and urea formaldehyde UFC 85 but melamine will begin production in the current
year 2010.” In this context, Mr. Al-Sowaidi highlighted some of the processes of
the company’s products saying the following:
“QAFCO operates 4 plants to produce ammonia with a total consolidated
capacity of more than 2 million metric tonnes annually. The company utilizes
most of its production of ammonia to produce urea and the surplus will be sent
for export. As to the urea in its two forms, granules and prills, we operate four
plants to produce the urea with a total production capacity of 3 million metric
tonnes annually. The ammonia produced by QAFCO is utilized as feed stock to
produce urea.
QAFCO’s relatively old plants (QAFCO 1 and QAFCO 2) produce the prilled
urea whereas the most recent plants (QAFCO 3 and QAFCO 4) produce granular
urea. In its endeavor to meet the increasing demand for fertilizers in international
markets which also witness a development in the trends of consumption,
QAFCO works on expanding granular urea production instead of prilled urea
because the fertilizers in granular form are more suitable for to the modern
agricultural techniques that are adopted in the developed countries. QAFCO’s
production at present prilled urea is around 930,000 metric tonnes paralleled by
2,070, 000 metric tonnes of granular urea.
The urea formaldehyde is a substance added to the urea to increase its solid state.
The UFC-85 is used as to impede the liquidity of urea. It is also used in many
other industries. Melamine is utilized in producing manufactured melamine and
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melamine urea formaldehyde which is used initially making coated surfaces, wood
sticking materials.”
Concerning QAFCO’s downstream companies, Mr. Al-Sowaidi says:
“The Gulf Formaldehyde Company was established in 2003 and to specialize in
producing and marketing urea formaldehyde condensates (UFC-85). It started its
production in 2004 with an approximate annual production capacity of 30,000
tonnes.
To deal in producing and marketing of melamine, Qatar Melamine
Company was created in 2006 by a shareholders’ agreement and a service
agreement between QAFCO and Qatar Holding Company.
Qatar Melamine
Factory, which was established with an annual production capacity of 60,000
tonnes, will become the largest of its kind in the Middle East. Moreover, it will
also become one of the largest melamine factories in the world. QAFCO’s high
quality urea is normally utilized as feedstock in the production of melamine. As
such, the factory contributes by putting an added value on the urea which
QAFCO produces and increases the company’s profit.”
At the end of his speech, Mr. Al-Sowaidi pointed to the necessity of
synchronizing the academics and with the market requirements while encouraging
Qatari national to work in the domain of industry. “I would like to say about this
particular industry and other varieties of modern industry which is currently
exchanged in the international market to affirm that there are changes that
occurred and the academics should conduct research in this area to include the
specializations needed by this market.
In fact, the international market has
generated many different industries which may not necessarily be tackled by the
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academic institutions in the Arab world. An example in point is the fertilizer
industry ranks high in the international market and generates huge profits to the
national economies. This makes this industry in a genuine need for continual
enhancement and further development and modernization. The latter comes only
by introducing suitable academic specializations in our universities and colleges.
Some academic institutions in Qatar and elsewhere have taken this point into
consideration but the idea needs to be generalized to enable us revamp our
indigenous Arab industry and bring it up to suitably acceptable levels with an
optimal utilization of our natural resources. In QAFCO we have 20% of the
Qatari nationals in managerial positions and there is a general national tendency in
Qatar toward encouraging Qatari nationals to work in the industry sector with its
different kinds and forms.”
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ABOUT QAFCO:
Qatar Fertiliser Company SAQ (“QAFCO”) is the world’s largest single site producer of urea and ammonia. It was
incorporated in 1969 and is currently a joint venture between Industries Qatar QSC (“IQ”) [75%], Fertiliser Holdings
AS (10%) and Yara Netherland BV (15%). QAFCO is engaged in the manufacture and sale of ammonia and urea,
which are sold primarily in the Indian sub-continent, and urea formaldehyde condensate.