By Santhosh V Perumal
Business Reporter
Al Khalij Cement Company has added another production line to take the total cement production capacity to 15,500 tonnes per day, which will to a great extend help Qatar in meeting the rising demand in view of many strategic infrastructure projects being undertaken, ahead of 2022 FIFA World Cup.
The second “identical” production line will double the clinker production capacity to 12,000 tonnes per day and enhance the cement production by more than 50% to 15,500 tonnes per day.
“We can say that we are now the largest producer of ordinary Portland cement in Qatar,” Al Khalij Cement Company managing director Faisal bin Abdullah al-Mana told reporters here yesterday.
The cement company, which is a part of Qatari Investors Group, has started initial production and will ramp up to full capacity within few weeks. Through the new production line, the clinker production will go up by another 6,000 tonnes per day from the existing 6,000 tonnes and cement production to 15,500 tonnes from the existing 9,500 tonnes.
Highlighting that the estimated total demand for cement in Qatar is in the range of 20,000-22,000 tonnes per day; he said with the addition of production capacity from Al Khalij, the country will be able to meet the growing demand domestically.
Asked whether the company foresees further increase in demand, al-Mana replied in positive and said it will be able to cater to it as the capacity has been enhanced more than 50%.
“We expect production capacity and demand levels to reach equilibrium by 2018,” Dubai-based financial services firm Arqaam Capital said in its Qatar cement sector report. To a question whether Qatar will need to import cement in view of $150bn spend being envisaged over the medium term as part of 2022 FIFA World Cup and Qatar National Vision 2030, he said, “if there will be any need, the imports will neither be for long time nor in big quantities.”
With the government asserting that “strategic” projects will continue, the cement sector will continue to witness healthy demand; even as he parried queries regarding prices.
Al Khalij had announced in 2013 that it was establishing a second production line at an estimated cost of around QR800mn to meet the rising demand from the country. In 2013, Denmark’s FLSmidth won a $95.9mn order for the supply of a complete cement production line for Al Khalij’s plant in Umm Bab. The production line is “identical” to the existing line, which was supplied by FLSmidth in 2007.
The strategy to have “identical” production lines, according to al-Mana, will make the maintenance and sourcing of spare parts easier. The FLSmidth order covers all main equipment for the production line: conveyor transport systems, mills, complete pyro line, electrical and automation systems as well as filters.
Al Khalij Cement, which has quality certification from Qatar Standards, has attached utmost priority to reducing carbon emissions, he said, adding the company’s production lines use the latest technology in this regard.
Al-Mana: Largest producer.
