Qatar National Cement Company (QNCC) plans to “commission two cement mills of its Plant 5 in the first half of 2017 to increase production capacity” by 5,500 tonnes per day.
The commissioning of the mills are among QNCC’s plans for the year, according to chairman and managing director Salem bin Butti al-Naimi, who addressed shareholders during the company’s annual general assembly held at the Sheraton  yesterday.
Al-Naimi said the company aims to complete the construction of Plant 5 by operating the kiln and other utilities during the second half of 2017. To meet market demands and the company’s objectives, QNCC will increase the production capacity of washed sand and calcium carbonate.
Al-Naimi said QNCC will dispose Cement Plant 1, including all of its accessories in Umm Bab after it was closed in June 30, 2016 to control the company’s overall cost and maintain its commitment to safety and environmental standards.
“We will continue protecting the environment and ensure the safety of the natural reserves in all industrial areas of the company and continue coordinating with the authorities to apply the highest protection standards adopted in the country,” al-Naimi said.
He said the company’s significant achievements in 2016 include “successfully” meeting market demand for all types of cement and washed sand as well as maintaining high quality standards and maintaining the prices for all products to support Qatar’s massive construction industry.
“The increase in revenue generated from the sales of cement, washed sand, and calcium carbonate was mainly due to the utmost utilisation of the company’s capacities to meet the local market demand,” al-Naimi stressed.
He said QNCC’s production in both categories of cement (OPC and SRC) reached 3.7mn tonnes in 2016 compared to the 3.8mn tonnes in the previous year. Production of washed sand increased to 8.8mn tonnes last year compared to 7.8mn tonnes in 2015. Calcium carbonate production increased to 37,400 tonnes compared to 37,000 tonnes.
Sales of all types of cement reached 3.7mn tonnes in 2016 against 3.8mn in 2015. Washed sand sales increased to 8.1mn tonnes compared to 7.7mn tonnes in 2015. Sales of calcium carbonate amounted to 36,000 tonnes last year and in 2015.
Total sales revenue stood at QR1.14bn in 2016 compared to QR1.17bn in 2015. QNCC achieved QR475mn net profit in 2016 against QR464mn in 2015. In 2016, shareholders’ equity increased to QR3.1bn compared to QR2.8bn in 2015.
QNCC also recorded a stronger financial position, with equity rights increasing by QR243mn in 2016, or 8.5%, compared to the previous year.
During the meeting, the shareholders approved the board’s recommendation to distribute 40% of the share capital as dividends to shareholders in 2016 amounting to QR4 per share, and 10% of the share capital as bonus shares, i.e. one free share for every 10 shares held.