Qatar Vinyl Company (QVC) has reported a net profit of $145mn (QR528mn) in 2010.
The company is constructing a second unit (VC2) with an investment of $500mn and expected to be operational by 2014 as part of efforts to double vinyl exports to $900mn, according to QVC general manager Hamad bin Rashid al-Noaimy.
VC2, with a production capacity of 700 metric tonnes per year, will be financed with 30% internal accruals and 70% bank loans, he said on the sidelines of a function to honour 89 employees who have completed 10 years of service.
The company produces 350,000 metric tonnes of VCM (vinyl chloride monomer) per year, in addition to 200,000 metric tonnes of EDC (ethylene dichloride) and 350,000 metric tonnes of caustic soda.
Together these three account for 950,000 metric tonnes per year.
Both EDC and VCM are the raw materials required for manufacturing poly vinyl chloride (PVC), one of the most commonly used plastic material.
The company’s vinyl exports stood at $450mn; which “is expected to be doubled with the new unit,” al-Noaimy said.
QVC - in which QP has a 55.2% stake, Qapco 31.9% and Arkema 12.9% – has expanded its reach to new customers in Australia and several Asian markets.
QVC, which was established in 1997 in Mesaieed Industrial City, imports solar salt for which it pays between $12-14mn per year and its annual expenses for purchasing ethylene and gas from Qatari firms stood at $350mn.