Qatar Petroleum (QP) announces its plan to integrate the activities of Qatar Vinyl Company (QVC), which is part of Mesaieed Petrochemical, into Qatar Petrochemical Company (QAPCO), part of Industries Qatar, through a service agreement arrangement. The result will be a single company – QAPCO, operating the facilities of both companies.
The integration will not result in any change to the shareholder ownership but will allow the realisation of synergies through the creation of a single entity that operates the assets on behalf of the two companies’ shareholders.
In making the announcement, Saad Sherida Al Kaabi, President & CEO of Qatar Petroleum said that the integration aims to enhance the competitiveness, financial performance, and resilience of both companies. The shareholders of Industries Qatar and Mesaieed Petrochemicals, according to him, will directly benefit from the integration as it reduces the operating cost and enhance the profitability of both companies.
Al Kaabi also said that QP will pool the distinctive resources and capabilities of QVC and QAPCO to create a higher value for their respective shareholders, while strengthening its global competitive position in the petrochemical industry. He added that he is confident that the merger will create an even more effective and efficient organisation to uphold the best interest of Qatar as well as each company’s respective shareholders and customers.
The integration process is expected to start this March and completed before end of the year. The integration of activities means that upon completion, QAPCO will be a single expanded and highly synergetic operating company fully managing QAPCO’s and QVC’s current activities.
Al Kaabi also reiterated QP’s commitment to building world-class Qatari talent, adding that all Qatari nationals currently employed by QVC will be integrated into the new QAPCO organisation. In conclusion, he said that QP remain fully committed to deliver on its strategic objectives – enhancing and growing the financial performance and competitive position of its business portfolio, and supporting the State of Qatar’s continued and sustainable economic growth.
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