An affiliate of Norway’s Yara International, one of the world’s biggest fertiliser makers, has set up a joint venture in Qatar that will be the world’s second biggest melamine plant.

Yara owns 25 per cent of Qatar Fertiliser Company (Qafco), which will in turn own 60 per cent of the newly established Qatar Melamine Company. The remaining 40 per cent stake will be owned by Qatar Intermediate Industries Holding Company.
“The Qatar Melamine Company plans to start construction of a melamine plant with a production capacity of 60,000 tonnes per year in the fourth quarter of 2006,” Yara said in a statement. The plant cost was put at $250 million.
The plant, which will rely on cheap energy sources in Qatar, is due for completion in early 2009. Melamine is a chemical product used in laminates, wood adhesives, surface coatings, textile treating and moulding compounds.
Qafco has awarded a $60 million (QR 219 million) contract to Qatar Engineering Construction Company (Qcon) to build the plant.
Qafco managing director Khalifa Al Sowaidi said Qcon was the first Qatari company to undertake a major construction project for a chemical plant of that scale. He and Qcon general manager Mazen Abu Naba’a signed the contract at Qafco’s Doha office.
The melamine plant will be the largest plant of its kind in the Middle East and the second largest in the world.
As per the contract, work to be executed by Qcon includes the completion of the new melamine plant and revamping of the existing Urea-1 plant.