QNCC: Cement productivity to increase by 12%
in light of the ongoing increase in demand for cement, Qatar National Cement Company (QNCC) is aiming to meet the growing appetite for cement in Qatar, as the infrastructure is aiming at increasing production by 12%.
Qatar National Cement Company (QNCC) is aiming to meet the growing appetite for cement in Qatar, as the infrastructure projects increasingly put a demand on this vital commodity.
QNCC claims to catering to over 70% of the local demand and anticipates that the total cement production capacity will be increased to over four million tonnes per annum, with the operation of two new mills by the end of this year. This will be a nearly 12% increase from the existing capacity.
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."
Speaking on the sidelines of QNCC's Annual General Meeting (AGM) Al Naimi 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."
He offered no estimated peak demand for cement in the run-up-to 2022, and said: "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.
Last year the company signed a letter of intent with a French company to further boost its production capacity, in view of the raising demand. The contract was signed for the construction of QNCC's Cement Plant Line 5.
The company had reported a net profit of QAR420.3m for the year ended December 31, 2014, which was down by nearly three percent compared to QAR433.3m in 2013. The Earnings per Share (EPS) amounted to QAR8.56 in 2014 compared to QAR8.82 in 2013.