Melamine group signs up

21 July 2006

The shareholders' agreement and the two key engineering and procurement (E&P) contracts were signed on 13 July for the estimated $250 million grassroots melamine project at Mesaieed. The 60,000-tonne-a-year plant will be built and operated by Qatar Melamine Company, a 60:40 joint venture of Qatar Fertiliser Company (Qafco) and Qatar Intermediate Industries Holding Company (Waseeta). Commercial production is due to begin in the first quarter of 2009 (MEED 2:6:06).

Milan-based Eurotecnicawill build the melamine plant under an E&P contract signed on the same day. Switzerland's Urea Casale has been appointed E&P contractor for the melamine integration, a revamp of the existing urea 1 unit andthe urea 1 environmentalproject. Qafco is tendering separately the construction package.

The proposed plant will take most of its feedstock from Qafco's existing units. The plant, which will be the largest of its type in the Middle East, will target demand in Europe and the US.

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