Industries Qatar to fund new PVC project announced by QVC – The Peninsula

Industries Qatar to fund new PVC project announced by QVC – The Peninsula

Doha: The Board of Directors of Industries Qatar (IQ) has approved signing of a ‘Principles Agreement’, whereby IQ will be funding the construction of new Polyvinyl Chloride (PVC) plant announced during April 2022 by its indirect joint venture - Qatar Vinyl Company (QVC), and later would become a direct shareholder in QVC with a larger stake, following the expiry of the current joint venture agreement (JVA).

In April 2022, an EPC contract was awarded for a new PVC plant, and the plant’s construction is expected to be completed by mid-2025.

As per the Principles Agreement, the total CAPEX outlay relating to the new PVC plant will be shared between IQ and Mesaieed Petrochemical Company (MPHC) in a ratio of 44.8 percent and 55.2 percent, respectively; equivalent to their share in QVC based on a new JVA. The project funding for IQ’s share will be made from its Group’s existing sources of free cash, ensuring an efficient and effective use of liquidity.

QVC’s JVA is expiring on May 1, 2026, upon which IQ will assume direct ownership in QVC with a larger shareholding percentage, with immediate effect. Qatar Petrochemical Company (Qapco) will continue to operate QVC, including the new PVC plant, under a plant