Oct 28 2010

Qatar International Cables Company (QICC) to ramp up production

DOHA: The Qatar International Cables Company ( QICC ) is ramping up its production at its cable plant in Mesaieed Industrial City with full capacity expected in the second quarter (Q2) of next year, according to the company's General Manager, Cyprien Federspiel.

QICC , a joint venture between global leader in the cable industry Nexans (30 percent) and Qatari partners, Special Projects Company (SPC) and Al Naema Holding is also eyeing to acquire a 20 to 30 percent market share of the Qatari cable market. Federspiel said that according to the Customs and Ports General Authority in Qatar, the total value of different cable imports reached around QR 2bn in 2008.

The state-of-the-art plant with a production capacity of approximately 25,000 tonnes of cables per year is expected to generate a volume of business of over $100m by 2011. "We have not started full production yet, but we have the capability. We are not choosing full production capacity as we are just launching production and it all depends on the results of tenders," Federspiel told reporters during a field tour of the plant hosted by QICC .

He said Qatar General Electricity and Water Corporation (Kahramaa) will be the main client for QICC which hopes to win a large portion of a huge tender Kahramaa issued few months ago. "Then we are going to cater all the clients linked to the oil and gas industry," he said. "The building market is also our target and there are also private projects like Lusail, The Pearl and EPCs"

The demand for the kind for low, medium and high copper cables which are to be produced by the QICC plant has increased in Qatar significantly over the past years, he said. Federspiel sees the launch of the flagship plant in Qatar as a key strategic step that would enable Nexans to address the specific needs of the buoyant and growing market in Gulf region as well as Yemen, but would not reveal the total project cost, saying it was still early to mention figures.

The QICC plant, Nexans' first such manufacturing facility in the Gulf region is focused on the manufacture of low and medium voltage cables for building and energy infrastructures as well as special cables for the oil and gas industry. "We have full management of the company meaning that we have some obligations to bring the best technology," says Federspiel.

"With Nexans technologies and QICC local presence, clients all over the region will enjoy integrated added value services with a complete support of the plant in Mesaieed. All kinds and sizes of projects in the region will benefit of the complete services QICC offers customized to the local necessities."

He added that QICC has opened a sales and marketing office in Doha to be as closer as possible to customers and "to make sure that we are going to deliver good services that they expect," he says.

As for sourcing of raw material for the plant, Federspiel said, "We will be trying to promote local products to improve the chain of supply to reduce the working capital. So we will be looking for reliable source of raw material here in Qatar such as polyethylene and PVC used for insulation that might be sourced from here in the future."

He also said that the facility with a total floor space of 19,000 sq.m of filled up area on an overall plot of 70,000 sq.m had plenty room for expansion in the future. With a global presence in the infrastructure, industry, building and local area network (LAN) markets, Nexans provides a complete portfolio of cables and solutions for market segments as diverse as oil and gas, petrochemicals, nuclear energy, shipbuilding, aerospace, automation, material handling and automotives. Nexans points out that it has a reputation for creating advanced technologies and durable high-performance products while promoting the responsible development of natural resources, protecting the environment and facilitating recycling.

Nasser Al Harthy

© The Peninsula 2010

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