Doha - Qatar will soon begin manufacturing explosion-proof electrical equipment, including bulbs and tubes, for use in hazardous industries like oil and gas, chemicals and petrochemicals.
An agreement was signed yesterday for the project in joint venture with a key South Korean company at the behest of the Qatar Industrial Development Bank (QIDB).
This is the third manufacturing project being launched here at the initiative of the QIDB with a Korean partner. The first one was to manufacture knitwear.
Partners in the project are Hyundai Explosion Proof Electric Company Limited (HEPEC), QIDB and Qatari investors.
Qatari investors will have a vast majority of shareholding (80 per cent) in the QR25m joint venture project, while QIDB will have an eight per cent equity and HEPEC, 12 per cent.
Besides, QIDB will provide a long-term lending of QR5m in yet another initiative to bolster small and medium industries in the country. The sum will be aside from the capital of the company.
Products to be manufactured include fluorescent lighting fixtures, armoured cable gland, control station, junction box and street lighting fixtures. Being explosion-proof, the use of such appliances in hazardous industries would ensure safety against possible explosion of electrical appliances.
The agreement for the joint venture was signed at the QIDB head office here yesterday by the bank's general manager, Dr (Sheikh) Hamad bin Nasser Al Thani, and chairman of HEPC, Park.
The venture has been named: Alaman Explosion-Proof Electrical Equipment Company. Korean ambassador in Doha, Chung Mun Su, was among those present.
Hamad bin Nasser told reporters after the signing ceremony that it was the third Qatari-Korean joint venture project promoted by QIDB. "The deal reflects our mutual trust in business cooperation and it will also lead to other joint ventures in future," he noted.
QIDB has already obtained the industrial licence, environment approval and suitable land for the project.
A feasibility study conducted shows that the project is extremely viable and has a strong and extensive market for the products.
A number of Qatari investors have shown keenness to participate in the venture, which will be a closed shareholding company (it will not be listed at the Doha Securities Market).
© The Peninsula 2005
