

Qatar Petrochemical Company Ltd (Qapco) is one of the leading producers of quality ethylene and low density polyethylene (LDPE) in the Middle East.
Founded in 1974 as a multinational joint venture to utilise associated and non-associated ethane gas from petroleum production in line with Qatar's industrial vision from the 1970s, Qapco began commercial production in 1981.
Over the past quarter of a century, Qapco has established a global presence and a reputation for quality and reliable supply. A new corporate identity and logo was recently unveiled under the patronage of Abdullah Al Attiyah, Second Deputy Premier and Minister of Energy and Industry at a prestige event in Doha.
This event was attended by Hamad Rashid Al-Mohannadi, Vice Chairman of the Board of Directors and General Manager of Qapco, a veteran of the petrochemical sector.
Al-Mohannadi outlined strategic developments that have been taking place at several levels in Qapco in recent years to meet the production and marketing challenges of the global petrochemical sector.
Qapco continues to develop a strategy that reflects globalisation challenges and the optimum utilisation of the available natural resources.
As a result emphasis have been directed towards expansion projects with this increasing production set to guarantee. Q
Qapco's enhanced global role is not only to become the leading LDPE producer in the Middle East, but a major global player with a diversified and balanced portfolio.
Qapco expansion projects include:
1. Producer of 1.32 Million MT of Ethylene (720 KMTin 2007 + 600 MT in 2009)
2. Producer of 650,000 MT of LDPE (400 presently + 250 KMT in 2010)
3. 63 per cent shareholder of QATOFIN which will produce 450 KMT LLDPE in early 2009
4. 31.9 per cent shareholder in QVC which produces EDC(175 KMT) Caustic Soda (290 KMT) and VCM (230 KMT)
5. 33.3 per cent shareholder in QPPC for producing industrial film and other plastic products.
In parallel, a marketing strategy has been developed and is being implemented to establish a global network dedicated to client excellence and capable of marketing effectively the developing product portfolio.
At the operational level, Qapco is adopting the most sophisticated TQM systems and developing operational plans for maximising quality and customer services. To spearhead this strategy Qapco has restructured its organisation to enhance its operational efficiency and effectiveness reflected by increasing annual net profitability over the past three consecutive years.
Qapco also plays a major role through its contribution to the national economy by its creation of business opportunities and employment.
Large numbers of small and medium size companies have been established with their main activities revolve around converting and processing Qapco products to consumer goods. Qapco is a major customer to number of service companies and plays an active role in coordinating, encouraging and supporting enterprises to invest in plastics.
At the governmental level there are various developments and initiatives with Qatar long recognised as a significant investment opportunity for the wider petrochemical and energy sector.
• Reasonable cost Utilities and Gas
• Well Developed Infrastructure and Support
• Fiscal Incentives, Exemptions
• Government Support through Policies and Legislation
• Political and Social Stability
• Geographic Advantageous Positioning in targeting Asian, African and European Markets
In conjunction with Qapco, these advantages are enhanced by providing businesses utilising its products with quality products, reliability, priority delivery and services at reasonable prices.
• Current Qapco projects/initiatives.
1. Producer of 400 KMT of LDPE (+250 KMT in 2010)
2. Producer of 530 KMT of Ethylene (720 KMT in 2007 + 600 MT in 2009)
3. Producer of 70 KMT
4. 63 per cent shareholder of QAFOTIN which will produce 450 KMT LLDPE in early 2009
5. 31.9 per cent shareholder in QVC which produces EDC (175 KMT) Caustic Soda (290 KMT) and VCM (230 KMT)
6. 33.3 per cent shareholder in QPPC for producing industrial film and other plastic products
Qatar's substantial economic growth represents a vast array of lucrative small to medium size processing and services business opportunities clustered around the country's resin production capacity.
Over the last three years, many production and operational challenges have been overcome by Qapco. These include expansion projects from feasibility studies through to design as well as the financial implications.
Excellent operational results in parallel with the scheduled progress of the expansion projects reflect great efforts across the Qapco workforce.
The primary focus of Qapco for 2006 is to continue its operational strategy for enhanced profitability by improved efficiency and efficiency throughout the company's functions and processes. Simultaneous, Qapco is spearheading expansion across many projects whilst exploring and being responsive to any potential future expansion opportunities that might arise.
Qapco is reaching a period of intensive growth and development and will continue to expand to become a major global petrochemical player.
The Qatari economy is driven by the State's commitment to utilising the country's hydrocarbon resources whilst diversifying its economic resources. Qatar now has one of the highest economic growth rates in the world. Subsequently, the optimum utilisation of the State's national hydrocarbon resources will result in Qatar becoming the world's GTL and LNG main producer and one of the top ten petrochemical producers in the future.
In 2005, Qapco estimated its net profit to reach QR1.35 billion ($370 million) reinforcing its primary objectives and responsibilities since inception as the petrochemical nucleus of Qatar Petroleum (QP), the first petrochemical project in Qatar.
Qapco's main objectives as a key part of QP are for the maximum utilisation of the countries natural resources and achieving the highest netback for the products to maximize its contribution to the national economy.
At the same time, creating business opportunities and employment to benefit the national economy is implicit.
Lotrene is a highly recognised international brand name sold to more than 4,000 customers across 75 countries. This commitment to excellence in product quality and customer service has rewarded us with a customer retention rate of 85 per cent as return business.
When completed Qapco's ongoing expansion projects will make the company the leading LDPE producer in the Middle East, and a major global player with a portfolio diversified and balanced product mix.
At present Qapco's export portfolio consists of 400 KMT of LDPE exported to 75 countries; 120 KMT of Ethylene supplied to QVC; 70 KMT of Sulphur
Qapco clearly recognises the strategic importance of Asia-Pacific region that since 1981, around 40 per cent of our exports allocated to this region. In addition, Qapco realises that as petrochemical production capacities in the Middle East increases, greater attention and emphasis will be directed towards these markets to absorb capacity increases.
In fact Qapco has anticipated this scenario several years ago, exerting great efforts towards establishing a strong market positioning the company in these regions to develop current and future export allocations reinforcing customers perceptions as a reputable global supplier.
Logically speaking competitive advantage revolves around three major factors: quality of product, price and customer service.
Qapco's absolute commitment to deliver excellence in product quality and customer service augmented with our prevailing market price offering have resulted in a successful combination giving a competitive edge over other international suppliers.