Qatar Petroleum (QP) has yesterday announced a plan to integrate the activities of Qatar Vinyl Company (QVC), which is part of Mesaieed Petrochemical, into Qatar Petrochemical Company (Qapco), which is part of Industries Qatar, through a service agreement arrangement.
The result will be a single company, Qapco, operating the facilities of both companies. Both Mesaieed Petrochemical and Industries Qatar are listed on Qatar Stock Exchange.
The integration will not result in any change to the shareholder ownership but will allow the realisation of synergies through creating a single entity that operates the assets on behalf of both companies’ shareholders, a statement said.
In making the announcement, Saad Sherida Al-Kaabi, president and CEO of Qatar Petroleum, said: “This integration aims to enhance the competitiveness, financial performance, and resilience of both companies. The shareholders of Industries Qatar and Mesaieed Petrochemicals will directly benefit from this integration as it reduces the operating cost and enhance the profitability of both companies.”
Al-Kaabi added: “we will pool the distinctive resources and capabilities of QVC and Qapco to create a higher value for both of their respective shareholders, while strengthening our global competitive position in the petrochemical industry. I am confident that we will create an even more effective and efficient organisation to uphold the best interest of the State of Qatar as well as each company’s respective shareholders and customers.”
The integration process is expected to start in March and to be completed before the end of the year. The integration of activities means that upon completing the integration, Qapco will be a single expanded and highly synergetic operating company fully managing Qapco’s and QVC’s current activities.
Al-Kaabi added: “In line with our vision and commitment to building world-class Qatari talent, we will ensure that all Qatari nationals currently employed by QVC will be integrated into the new Qapco organization.”