Qatar Petroleum buys controlling stake in vinyl firm

18 August 2008
Qatar Petroleum (QP) has bought a further 29.7 per cent stake in Qatar Vinyl Company (QVC) for $136m from Norway’s Norsk Hydro, giving it a majority shareholding in one of the state's major downstream petrochemicals projects.

Hydro sold its polymers division to UK chemicals company Ineos earlier this year, but excluded the QVC stake.

QVC produces 290,000-tonnes-a-year (t/y) of caustic soda, 175,000 t/y of ethylene dichloride and 230,000 t/y of vinyl chloride monomer.

Following the latest deal, QP now owns 55.2 per cent of QVC. The other shareholders are Qatar Petrochemical Company with 31.9 per cent and Arkema, with a 12.9 per cent stake.

Hydro is developing Qatalum, a 585,000 t/y aluminium smelter at Mesaieed in a joint venture with QP. A second phase of expansion at the plant will raise output to 1.2 million t/y. Production is expected to start in 2010 (MEED 25:1:08).

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