QPPC preparing for big time
August 2013 Volume 22 Issue 8 of Gulf Industry Online
An upcoming mega petrochemical complex and a new wood-plastic product could change the fortunes of the company considerably
Qatar Plastic And Wooden Products Company (QPPC) is preparing to meet big packaging demand that will arise from Al Sejeel Petrochemical Complex which will feature a world-scale mixed-feed steam cracker with plants designed to produce 2.2 million tonnes annually of polymers including PE and PP resins.
QPPC has also diversified its offerings with the launch of EcoDeck, a wood-plastic composite. The new product, made of polyolefin material and wood and vegetable fibre, will reinforce its portfolio of flexible packaging films for automatic bagging lines and films for industrial and agricultural applications.
Eng Mohammed A Rahman Hijji, QPPC general manager, said the new petrochemical complex would require 7,000 tonnes of packaging materials. "This complex is forecasted to start operation during 2018 and QPPC is already preparing on this additional demand," he added.
Qapco, a partner in Al Sejeel, is also part owner of QPPC and a major buyer of QPPC products.
About the new product, the wood-plastic composite EcoDeck, Al Hjji said: "Compared to normal natural wood, EcoDeck has unique characteristics such as longer life against severe weather conditions, higher resistance against salt corrosion fungicides and moulds, limited water absorption, aesthetical appeal similar to the typical outdoor wood decking and freedom on colour of choice due to the thermoplastic base material, EcoDeck is found to be very suitable in Qatar and the Middle East region. The most common application is for outdoor decking such as in swimming pool areas, marinas and public areas."
QPPC, owned equally by Qapco, Qatar Industrial Manufacturing Company and Febo of Italy, reported sales of QR88 million ($24.1 million) in 2012 against QR83 million in the previous year. Net profit was QR10.3 million, up 5.2 per cent compared to 2011. Total production in 2012 was 11,500 tonnes and the company is forecasting it will produce 12,100 tonnes this year.
Among the company's products, FFS (form, fill and seal) film accounted for 83 per cent of total sales in 2012 with shrink film accounting for 14 percent.
As well as Qapco, its main customers are Qatofin and Qatar Chemical Company (Q-Chem 1 and Q-Chem 2).
The company modified some of its plant equipment in recent months. An upgrade to the cooling system of Extrusion lines 5 and 6 helped output of those lines increase nearly 25 per cent, the company said. The company also installed a new co-extrusion line for shrink film. Output soared 45 per cent compared to the old line it replaced.
Al Hijji said QPPC's focus for the next two to three years would be on preparing to meet the packaging requirements for the mega petrochemical complex as well as establishing a good market for EcoDeck.
