08 Jan 2018 - 18:43
Qatari company to make copper wires, aluminium bars as country becomes more self-reliant
The Peninsula / Reuters
Doha: An affiliate of Qatari conglomerate Aamal Co plans to build three factories to produce copper wires, aluminium bars and drums for cables, projects that could make the country more self-reliant in the face of a blockade by other Arab states.
The factories will be established by Senyar Industries Qatar Holding, owned 50 percent by Aamal and 50 percent by cable maker El Sewedy Electric Co, Aamal said on Monday.
Qatar’s government has been encouraging companies to set up local production facilities, reducing the need for imports, since Saudi Arabia and three other Arab countries cut diplomatic and transport links last June, disrupting import channels.
“Once those three projects are completed, we will have an integrated cycle for cable manufacturing that will fulfil the local market needs as a first step before we then export to other markets,” Aamal’s chairman Sheikh Faisal bin Qassim Al Thani said in a statement.
Qatar’s natural gas industry and large number of infrastructure projects create heavy demand for wires and cables. A source familiar with the projects told Reuters they were planned before the siege began.
The three facilities will have combined paid-up capital of QR 115 million ($31.6 million) and be funded by a combination of equity and debt, Aamal said. They are to be completed between the end of this year and the end of 2019.
Senyar Industries Qatar Holding is a leading Qatari industrial company that currently owns and operates two main divisions - Doha Cables, the first cable manufacturing facility in Qatar, and El Sewedy Cables Qatar. Senyar Industries Qatar Holding will own 100% of all three factories and is in the process of obtaining all the necessary approvals to start their construction.
Senyar Copper Production Factory, with capital of QR 95million, will specialise in the production of copper wires and is expected to be ready by the first quarter of 2019.
Senyar Aluminum Production Factory with a capital of QR 10 million - will produce aluminum bars and is expected to be ready by the end of 2019.
Senyar Drum Production Factory, with capital of QR 10million, will specialise in the production of wooden and steel cable drums. The expected completion date of this factory is end of 2018.
“We are very pleased to announce these three major industrial projects, all of which reflect Aamal’s ability to create new revenue streams which support our medium-term growth plans while also creating synergies with our other industrial activities. One of Aamal’s great strengths is our ability to identify and capitalise on investment opportunities and our ability to meet the increasingly sophisticated needs of the market,” Sheikh Mohamed bin Faisal Al Thani, Vice Chairman and Managing Director of Aamal said.