Al Naimi

Qatar's premier cement company is on the threshold of introducing new production lines and, with a strong performance during the first half of the current year and prospects looking good for the rest of the year, it appears set to surpass profits for 2001.

"Prospects for complete year 2002 are excellent," said Qatar National Cement Company (QNCC) general manager Mohamed Ali Al Sulaiti, who announced that sales for the first six months of 2002 were QR114 million ($31.31 million) and net profits QR59.77 million. The good half-yearly show came on the heels of net profits of QR112.75 million earned for the whole of 2001. The figure for 2000 was QR79.23 million.

The company will soon produce fly ash cement and type G cement, the production facilities being already in an advanced stage of progress.

Al Sulaiti commented that the Qatari cement industry had a bright future with large projects likely to take shape and demand for cement growing by more than 20 per cent annually. "To cope with the increase in demand, the company is seriously planning an expansion in production and may announce plans in the near future," the official said.

"Cement has an important role to play in all civil works in one form or the other. The economy of Qatar is healthy and growing rapidly. Profits in the cement industry of Qatar may rise in the years to come while they may remain stagnant in other GCC countries," he maintained.

Figures released by the company show that production in ordinary and sulphate-resistant cement amounted to 1.20 million tonnes in 2001 against 1.02 million tonnes in the previous year. Lime production in both calcined and hydrated categories amounted to 33,040 tonnes against 23,300 tonnes in 2000. Sales revenue amounted to QR207.10 million in 2001 against QR171.87 million in the previous year, the increase being realised despite intense competition in the local market from imported supplies and without a change in prices. Operation and trade profits were QR102.60 million against QR81.54 million in 2000.

"The financial status of the company has become more strong due to outstanding results attained during 2001; rights to shareholders' equity have reached a value of QR747 million against QR665 million in the previous year," chairman and managing director Salem bin Butti Al Naimi said in his report.

Describing developments in 2001, Al Naimi said the company had selectively invested in the local share market "with the objective of strengthening its confidence in the local share market and diversifying its income base."

He also noted that the Qatari cabinet had approved a proposal of the Ministry of Finance for the sale or transfer of the government's sand washing plant to QNCC.

The soon-to-begin production of value-added products such as fly ash cement, oil well cement and slag cement would help meet growing demand in the oil and gas industry, which now imports its requirements, Al Naimi said.

Another high point of 2001 was the award of the ISO 9002 certification.

QNCC, which has its production facilities in Um Bab, is one of the oldest manufacturing companies in Qatar, having been incorporated in 1965. Its capital was increased in 1984 to QR101 million with a government share of 43 per cent and the remainder contributed by the national private sector.

13