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Qatar’s lead role in the global production of low-density polyethylene will get consolidated with the start up of Qapco’s QR2.3bn LDPE 3, which was inaugurated by HH the Emir Sheikh Hamad bin Khalifa al-Thani at Mesaieed yesterday.
With an annual capacity of 300,000 tonnes, the facility will make Qapco the largest single-site producer of low-density polyethylene in the world and Qatar a key member of the global club of major petrochemical producers and exporters.
Qapco’s polyethylene output will see a 75% increase – to 700,000tpy from 300,000tpy with LDPE 3 attaining full capacity in January next year.
Qapco’s two existing production lines - LDPE 1 and 2 - already account for more than 400,000 tpy.
Products from LPDE 3 will be sold under the brand name “Lotrene” through Qapco’s global marketing network, which comprises some 30 own offices and logistic facilities around the world.
Currently, the company has some 4,500 corporate customers in 145 countries worldwide.
Qapco’s industrial clients will benefit from the facilities’ premium low-density polyethylene, the raw material required to manufacture most thermoplastic-based products. These include items such as packaging films and agricultural, extrusion, coating lamination and high clarity films, injection moulding, pipes, cables, wires, and other related products.
According to Qapco, the new facility will produce “prime high pressure grade LDPE”, thus positioning the company as a global leader in LDPE production.
Currently, Qapco’s manufacturing facilities consist of an 800,000 tpy ethylene plant, 70,000 tpy sulphur processing facility, in addition to the two existing LDPE plants.
LDPE 3 was conceptualised in 2002, when Qapco identified “huge potential” for the material in view of its global demand.
Construction began in 2009 after the foundation stone for the project was laid by HH the Heir Apparent, Sheikh Tamim bin Hamad al-Thani.
The engineering, procurement and construction (EPC) contract for LDPE 3 was awarded to Germany’s Uhde, a company renowned for designing and building chemical plants worldwide. The technology was licensed by Bassel, another global giant in the sector concerned.
LDPE 3 meets the “extremely stringent environmental standards” set by the Ministry of Environment.
Cooling water from the plant is carefully treated before recycling even as heat generated at the plant during the production process is used for heating and power.
A major highlight of the construction is that some 12.7mn man hours of no loss time was recorded at the Mesaieed facility.
Speaking after the plant inauguration, HE the Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada said that while Qatar had been blessed with plentiful natural resources, it was the value that was created by processing the raw products that moved the country forward in its economic diversification goals.
“At the national level, the country and its people can be proud of the fact that with LDPE 3, we continue to reinforce Qatar’s position not only as a regional industrial power, but also a global one,” al-Sada said.
Qapco chairman Hamad Rashid al-Mohannadi said that LDPE 3 would help the company reach more markets, especially in emerging countries, with its Lotrene brand.
“This is a strategic project for us. We have been a leader in the production of low-density polyethylene since 1981. But in the last five years, we have lost some share,” al-Mohannadi said.
Qapco vice-chairman and CEO, Dr Mohamed Yousef al-Mulla, said the LDPE 3 started production in August with the capacity now reaching 93%.
“We are gradually increasing the output and following the final performance test we hope to attain full production capacity by January 2013. We may be able to go even up to 330,000tpy,” al-Mulla said.
Prior to the inauguration the Emir took a tour of the LDPE 3 facility. He was accompanied by HE the Chairman of Administrative Control and Transparency Authority, Abdullah bin Hamad al-Attiyah, al-Sada, Total Refining & Chemicals president Patrick Pouyanne, al-Mohannadi and al-Mulla among others. Page 34