Acknowledged to be one of the largest in the Middle-East, Qatar Melamine Company will produce 5 percent of the global melamine production.

Mesaieed: His Highness Sheikh Hamad Bin Khalifa Al-Thani, the Emir, dedicated the Qatar Melamine Company to the nation in a ceremony held in Mesaieed, today.
The inauguration of the Qatar Melamine Company (QMC) marks the debut of a new potentially beneficial industry in Qatar that will enable the country to avail itself of the comparative advantage it enjoys in terms of abundance of feedstock and competitive energy supplies. In its totality, this new industry represents a unique and genuine addition to Qatar’s cluster of economic activities. QMC is an initiative by Qatar Fertiliser Company (QAFCO) to further support the State of Qatar’s industrial diversification strategy.
The inauguration ceremony was attended by HE Abdullah Bin Hamad Al-Attiyah, Deputy Prime Minister and Minister of Energy & Industry, HE Dr. Mohammed Saleh Al-Sada, State Minister for Energy and Industrial Affairs, a number of their Excellencies sheikhs, HE Mr. Abdullah Hussein Salatt QAFCO Board Chairman, QP board members and ambassadors from countries that participated in implementing the melamine project. Among those present on the occasion were board members from QAFCO, Yara International, senior officials from companies, which executed the two projects, a number of distinguished personalities, and officials representing international, GCC and Qatari firms and companies.

The ceremony started with the recitation of verses from the Holy Qur’an, followed by documentary films narrating the story of Qatar Melamine Company project.

After that, His Highness Sheikh Hamad Bin Khalifa Al Thani, the Emir of Qatar inaugurated QMC’s plant and then toured the plant and its facilities.

In His speech, quoted in the QMC Documentary film, HE Abdullah Bin Hamad Al-Attiyah, Deputy Prime Minister, and Minister of Energy & Industry, said that the inauguration of QMC plant as an important addition to the industrial sector in Qatar and a step forward in achieving the goals of Qatar’s long-term strategy which was set by His Highness The Emir Sheikh Hamad Bin Khalifa Al Thani for optimal utilization of Qatar resources and diversification of its economy.

HE Al-Attiyah said: “Part of QAFCO’s long-term strategy has been to build an over-capacity of high quality urea to eventually provide feedstock for Qatar Melamine Company. This, combined with efficient energy and QAFCO’s direct control over Qatar Melamine Company, will generate tremendous value for Qatar’s exports as a whole. In addition, it is a matter of national pride that Qatar Melamine Company is now the largest single producer of melamine in the region”.

HE Al-Attiyah added: “Qatar Melamine Company adds yet another unique venture to Qatar’s export portfolio. This new step towards diversification is a testament to the vision of His Highness the Emir Sheikh Hamad Bin Khalifa Al-Thani to take Qatar closer towards the objectives set in the National Vision 2030. Qatar Melamine Company will prove to be a valuable part of Qatar’s industrial sector for many decades to come. I would like to thank His Highness the Emir for his resolve in achieving the National Vision 2030 and for the continued progress the country has made under his leadership.”

In a recorded statement on the occasion, QAFCO Chairman, HE Abdullah Hussein Salatt said: "The foundation stone for the Melamine plant was laid in April 2008, with the engineering, procurement and construction contract (EPC) going to the Italian firm, Eurotecnica, which has integrated its proprietary high-pressure melamine process into the plant for maximum operational efficiency. The Swiss firm Urea Casale revamped the Urea-1 train and for melamine integration within the QAFCO complex with provision for future capacity build-up."

Elaborating further, HE Salatt said:
"Because of the universal importance of melamine, it is imperative that Qatar Melamine Company supplies only the highest quality of product to its customers. That is why the management is totally committed to continuing QAFCO's legendary record of quality control and customer service with Qatar Melamine Company."


He also added: “The addition of melamine to Qatar’s portfolio is testament to the long-term vision of the country’s leaders and to their savvy in expanding the country’s industrial portfolio.” He further added that the melamine plant integrates seamlessly with QAFCO’s urea production facilities, resulting in tremendous cost-efficiency through economies of scale”.

In a recorded message on the event, QAFCO Managing Director, Mr. Khalifa Abdullah Al-Sowaidi said: "Qatar Melamine Company's capacity of 60,000 tons per year makes it the largest melamine facility in the Middle East, and the second largest in the world. Right now, we are capable of supplying 5% of the entire world's melamine demand. And by utilizing QAFCO's excess urea supply, our costs have been controlled very efficiently, allowing Qatar Melamine Company to provide excellent return-on-investment for Qatar."
Elaborating on the importance of the melamine plant and its role in supporting the economy, Al-Sowaidi said: “In addition to bringing an added value to Qatar’s production of natural gas and increasing QAFCO’s profits, this project will create job opportunities for Qatari youth and its production of melamine will help in the development of downstream industries, wherein the melamine produced can be consumed and put to use locally as well as exported throughout the region. This will reinforce the gross domestic product (GDP) and contribute to advancing Qatar economy."

The melamine project consisted of creating a melamine plant within QAFCO complex in Mesaieed Industrial City with a design capacity of 60, 000 metric ton per year. It also included revamping of Urea-1 plant. The revamp targeted to increase the plant’s production of high quality urea to be utilized as feedstock in the production of melamine. Financed, managed, operated, and marketed by QAFCO, the plant which has been inaugurated today is acknowledged to be the largest in the Middle-East and the second largest melamine production line in the world.

The Melamine project, built at a total cost of 350 million US dollars, will use QAFCO’s high quality urea as a feedstock. So as part of the Melamine project, the existing Urea-1 plant has already been revamped using technology from Urea Casale/ Switzerland to provide the melamine plant with the required urea. The cost of this project is about 95 million US dollars, including 40 million dollars spent to resolve environmental commitments made to the Ministry of Environment in Qatar”.

Produced mainly in Europe, North East Asia, Asia Pacific and North America, Melamine is a versatile substance with a highly stable structure that can be easily moulded while warm. This feature makes it ideally suited to certain industrial applications. Melamine is also used in the synthesis of Melamine Formaldehyde (“MF”) and Melamine Urea Formaldehyde (“MUF”) resins, which are used mainly for laminates, wood adhesives, surface coating, paper, textile treatment, and for moulding compounds. These items are in turn absorbed by the construction sector and by the wood processing industries for furniture, paper, textile, automotive, and dinnerware industries. Apart from this, Melamine plays a vital role in a wide range of flame resistant materials. These include textiles used in upholstery and the uniforms worn by firemen. Thermal liners, heat resistant gloves, and aprons to protect from splash back of hot substances are made using melamine. Melamine will protect a wearer from heat hazards, and can help to resist the spread of fire in aircraft and buses by providing a fire blocker.

Officials who were in-charge of the project gave ultimate attention to environmental issues, quality standards and safety requirements. The technology used in Qatar Melamine plant is the Eurotecnica’s High Pressure (HP) Melamine Technology, which uniquely stands as the state-of-the-art in the global melamine production industry.

Talking to reporters, QAFCO Chairman Mr. Abdullah Hussein Salatt said, “Along the way, Qatar Melamine Company has displayed an unwavering commitment to personnel safety as well as environment preservation.”

QAFCO Managing Director Mr. Khalifa Al Sowaidi informed that the environmental issues were addressed prior to awarding the contracts for the project. The execution of an Environmental Impact Assessment (EIA) study for the Melamine project was approved by Qatar’s Ministry of Environment. The environmental efforts continued with relevant specifications forming part of the contracts (requiring “zero emissions” from the Melamine plant), and was closely monitored and followed up by the QAFCO Project HSE team throughout the project execution phase. “To assure that the environment is pivotal to Qatar Melamine project, around 40 million US Dollars were spent on finding adequate solutions to environmental issues to which QAFCO committed itself with the Ministry of Environment.” Mr. Khalifa Al Sowaidi added.

Safety
Safety was accorded the highest priority during the Melamine project. In fact, it started right with specifications in the respective contracts, and continued during the design and engineering phase to ensure that all inherent safety measures were properly considered and implemented for the modified and new installations. Elaborating further, QAFCO MD Mr. Khalifa Al Sowaidi said, “During the execution phase at the site, the Project Team established its own Health, Safety and Environment team headed by an experienced HSE Manager, to follow up all work at site from an HSE point of view.” In addition, the systematic monitoring and follow up approach by QAFCO’s Project Team included also regular auditing, surveillance activities, management walks and management meetings. Finally, a good, close and well coordinated relationship with the existing QAFCO Safety and Environment Sections was focused throughout the execution of the project.
The main HSE achievements for the project, being only two lost time accidents in total more than nine (7) million man-hours. Zero major environmental incidents while having spent shows the result of the strong and dedicated efforts paid to HSE matters throughout the project.

The background
The idea gathered steam in the year 2003 when the feasibility studies for Qatar’s Melamine plant were conducted. Based on the findings of the feasibility studies QAFCO entered into a Shareholders' Agreement and a Services Agreement in 2006 for the establishment of Qatar Melamine Company (QMC). As per the provisions of the two agreements, QAFCO will operate, manage and market the Melamine from QMC.
A license agreement was signed with Eurotecnica, Luxembourg for the supply of their proprietary high pressure Melamine technology for the new 60,000tpy Melamine plant, while a fixed-lump-sum engineering and procurement contract (EP) was awarded to Eurotecnica of Italy for engineering services, procurement of materials and equipment, provision of construction assistance and commissioning and start-up supervision for the Melamine plant.

At the same time, an EP contract was awarded to Urea Casale of Switzerland for revamping of the existing Urea-1 plant, for the purpose of increasing its front-end capacity from 1300 MTPD to 1610 MTPD. The revamp will create efficient integration with the new Melamine plant and help to export minimize the drop in urea exports. The revamp will also ensure compliance with relevant environmental standards.

The entire construction scope, which covers both the Melamine plant and the Urea-1 revamp project, was awarded to Qatar Engineering and Construction Company. This points to the high level of expertise some local companies have attained and paves the way for them to achieve their full potential in the construction of chemical process plants.
Mr. Khalifa Al-Sowaidi added that in Europe the melamine contributes to a huge environmental project involving recycle of returned wood products where they are ground, mixed with melamine resins and restored thereafter in a new form of wood as it is the case with IKEA products. The end result of this technology is environment preservation by decreasing the cutting of trees and forests.

Concluding his statement to reporters, Mr. Khalifa Al-Sowaidi said: “Born with full-fledged factors of success, QMC will confidently grow as an efficient and positive driving-force in backing up Qatar’s industrial and economic development on the grounds laid down by His Highness Sheikh Hamad Bin Khalifa Al-Thani, The Emir and His Highness Sheikh Tamim Bin Hamad Bin Khalifa Al-Thani, The Heir Apparent and with the wise guiding insights of His Excellency Abdullah Bin Hamad Al-Attiyah, Deputy Prime Minister and Minister of Energy and Industry. We are very confident that the bright future will bring along more considerable achievements to our beloved country, Qatar”.
On the occasion, Mr. Sowaidi also thanked the efforts of, Mr.Humoud Al-Mannai, QAFCO Major Projects Manager, Mr. Ole Martin Bakkurude, Project Manager, Mr. Salem Al-Saadi, Operations Manager, and Mr. Haytham Elamin, Engineering and Construction Manager and other members of the team, for the successful completion of the project.

QAFCO conducts heat stress campaign.

QAFCO to supply Melamine to Europe.

Qatar Fertilizer Company (QAFCO) signed an agreement with Helm, Germany on the 12^th of May 2010 to export 18,000MT Melamine to Europe.

Speaking on the occasion, QAFCO Managing Director, Mr. Khalifa Al Sowaidi said, “The agreement is in line with QAFCO's marketing strategy to expand its market reach of its melamine product from our upcoming Qatar Melamine Company plant to the European markets.” He further added that the agreement will be a milestone for future business relationships in the region.

The agreement was signed by Mr. Khalifa Al Sowaidi, and Mr. Harmut Glaser, Executive Board Member from Helm. The ceremony was attended by Mr. Yousef Al Kuwari, QAFCO Marketing Manager, Mr. Abdulla Al Kuwari, QAFCO Melamine Sales Manager, Mr. Uwe Paulsen and Mr. Sami Jayousi from Helm.

Here it should be mentioned that Qatar Melamine Company is owned by QAFCO (60%) and Qatar Intermediate Industries Holding Company (QH) (40%). Being built with a total cost of US$350 million and a production capacity of 60,000 tons per annum, the plant will be the largest melamine plant in the Middle East as well as one of the largest in the world. The plant is expected to add extra value to the urea produced by QAFCO and is expected to boost QAFCO’s profitability.

QAFCO releases Baseline Ecological Survey report on AlBesheriya islands

QAFCO-6 Project EPC CONTRACT Signing Ceremony

An Engineering, Procurement and Construction contract for QAFCO-6 Expansion project was signed on November 5th 2009 between Qatar Fertilizer Company (QAFCO) and a consortium from the Italian company Saipem and the Korean company Hyundai Engineering & Construction Company. Mr. Abdulla H. Salatt, the QAFCO Board Chairman, signed for QAFCO, Mr. Varone Pietro - Chief Operating Officer Onshore Business Unit signed for Saipem while Mr. J. H. Kim, COO of Plant Division, Hyundai Eng. & Const Co. Ltd signed for Hyundai.

The signing ceremony, which took place at QAFCO's Doha office, was attended by QAFCO Board Members and Senior executives from Saipem and Hyundai Engineering and Construction company.

Speaking on the occasion, QAFCO Board Chairman, Mr. Abdulla H. Salatt, said, “The construction works will take 35 months and the completed project is expected to be taken over by QAFCO in the end of the 3rd quarter of 2012. Besides Saipem and Hyundai, the main contractors, a number of international and national construction companies will take part in the project construction as sub-contractors.”

Mr. Salatt, added “The project will help to create job opportunities for nationals and enable Qatari employees of QAFCO to acquire advanced expertise in the design, construction and operation of large-scale industrial projects. The project also puts into effect the country’s economic policy, which entails optimal utilisation of the nation’s gas resources, expansion in the petrochemical sector to bolster up the country’s economy and give further impetus to the development process”.

Mr. Khalifa Al-Sowaidi, QAFCO Managing Director, said in his speech to the press “The signing of this contract is an advanced step forward towards the execution of the project which will be constructed in Mesaieed Industrial city. The project facilities to be constructed include:

• A complete urea plant, with a design capacity of 3800 mtpd of urea including a granulator unit with a design capacity of 3850 mtpd

• A complete urea granules storage, with a capacity of 175,000 mt.

• A complete material handling system with a capacity of 1000 mtph of urea granules.

• Additional seawater cooling cells, steam and power generation facilities in addition to the ones already in the Qafco 5 Plant.

• All interconnections between QAFCO-6 and QAFCO-5 and the UFC 85 Plants.

Further elaborating on the project, Mr. Al Sowaidi said, “The EPC cost of the QAFCO-6 project will be around $610 million. The contract covers the supply of licenses, engineering, procurement, construction and start-up of the plant.”

Mr. Sowaidi further added “On completion, QAFCO-6 is set to achieve its objectives which include raising the Company’s production capacity and cutting down the unit production cost. -When completed in 2012, QAFCO-6 project will increase the company’s annual production capacity of urea to 5.6 million MT. -
thus the project is expected to boost QAFCO’s profitability and place it on a stronger footing as a key player in the global fertiliser market.

A letter of intent was issued by Qatar Fertiliser Company (QAFCO) for the construction of QAFCO-6 project.

The EPC (Engineering Procurement Construction) contract was awarded to a consortium comprising Saipem of Italy as leader and the South Korean company Hyundai Engineering & Construction Co. Ltd. Saipem and Hyundai have been working at the Qafco 5 project which is under construction now.

The awarding of this letter of intend is an advanced step forward towards the execution of the project which is set to come as a milestone in the country’s industrial development plans. These plans receive the full support of HH the Emir, Sheikh Hamad bin Khalifa Al Thani and HH the Heir Apparent Sheikh Tamim Bin Hamad Al Thani and H. E. Abdulla bin Hamad Al-Attiya, Deputy Prime Minister and Minister of Energy and Industry

The EPC cost of the QAFCO-6 project will be around $610 million. The contract covers the supply of licenses, engineering, procurement, construction and start-up of a complete granulated urea production plant with a capacity of 3,850 tonnes per day and associated utilities and off-site units at the Qafco Complex in Mesaieed Industrial City.

The construction works will take 35 months and the completed project is expected to be taken over by QAFCO in the end of the 3rd quarter of 2012. Besides Saipem and Hyundai, the main contractors, a number of international and national construction companies will take part in the project construction as sub-contractors.

It is worth to mention that the initiative idea of QAFCO-6 project was based upon QAFCO’s successful business experience in the course of the last 4 decades, and the encouraging national vast reserve of natural gas. Having these potentials, QAFCO has taken upon itself the task of drawing up an ambitious future vision to ensure further development of the company. In this context the idea of initiating QAFCO-6 project, has come up.

Following the completion of the studies, which covered all the technical, economic and financing aspects of the project, besides the study of QAFCO’s existing infrastructures and available resources such as offices, storage facilities, workshops, jetties and the level of technical and administrative expertise currently available to the Company. In light of the findings of the said studies, the scale of the project as well as the required technical specifications were determined.

It became evident that the project is economically viable and can be executed with maximum cost-effectiveness in view of the following facts:

• QAFCO is going to build on the similar experience it had gained during the construction of QAFCO-3 project, which went on stream in 1997 and QAFCO-4 project which was launched in April 2004 and QAFCO-5 which is under construction now.
• The need to recruit additional manpower is limited.
• Availability of skilled manpower to run and maintain the project facilities, both on the administrative and the technical sides.
• Availability of adequate infrastructures.
• The surge in demand for fertilisers, specially in Asia, QAFCO’s traditional market.
• The vast experience QAFCO has gained in the production and marketing of its products.

QAFCO-6 will be as a state-of-the-art plant. The design and engineering of the project facilities will cater to the various environmental considerations and ensure compliance with the highest standards of safety.

On completion, QAFCO-6 is set to achieve the following objectives:

• By raising the Company’s production capacity and cutting down the unit production cost, the expansion is expected to boost QAFCO’s profitability and place it on a stronger footing as a key player in the global fertiliser market.
• The project will help to create job opportunities for nationals and enable Qatari employees of QAFCO to acquire advanced expertise in the design, construction and operation of large-scale industrial projects.
• The project puts into effect the country’s economic policy, which entails optimal utilisation of the nation’s gas resources, expansion in the petrochemical sector to bolster up the country’s economy and give further impetus to the development process.

It is worth to mention that Qatar Fertiliser Company (QAFCO), was founded in 1969. The company is now owned by Industries Qatar (IQ) as 75% shareholder and Yara International as 25% shareholder. At present QAFCO complex comprises 4 completely integrated trains, QAFCO-1 (1973), QAFCO-2 (1979), QAFCO-3 (1997) and QAFCO-4 (2004). Each of these production lines consists of an ammonia plant and a urea plant. The overall annual production capacity of the 4 plants is 2 million tons of ammonia and 3 million tons of urea.

The QAFCO-5 expansion project, which will be completed in early 2011, will raise QAFCO’s annual production capacity to 3.8 million MT of ammonia and 4.3 million MT of urea making QAFCO the world’s largest single-site producer of both ammonia and urea -Thus far, QAFCO has become the world’s largest single site urea producer after the inauguration of its 4th expansion (QAFCO-4) in April 2004-. While the QAFCO-6 project will increase the company’s annual production capacity of urea to 5.6 million MT. consequently the project will strengthen the company’s position as a key player in the global fertilizer market.

High quality products, a strategic geographical location, efficient logistic facilities and reliability in supply are among the factors that propelled the growth of QAFCO into a main producer and exporter of ammonia and urea in the world.