Qatar Steel signs off-take deal with Muntajat
06 Feb 2018 - 23:30
DOHA: Industries Qatar (IQ), one of the region’s industrial giants with interests in the production of a wide range of petrochemical, fertiliser and steel products, has announced the signing of an off-take agreement between Muntajat and Qatar Steel to migrate the marketing, sales and distribution activities of Qatar Steel’s entire production to Muntajat.
This agreement comes as part of Industries Qatar’s efforts to maximize its shareholders’ value and strengthen the national economy through its continuing initiatives of commercial and cost optimisation, and expand the strong capabilities of national entities.
The migration arrangements have commenced and are scheduled to be completed by the beginning of the second half of 2018. At that stage, Muntajat will formally take over the marketing, selling and distribution activities of Qatar Steel’s entire production.
This new arrangement capitalises on the strengths of both companies. Qatar Steel will continue to focus on steel production and to enhance its operational and financial per-formance through efficiency improvement, cost reduction and other operational syner-gies.
Muntajat will apply its knowledge and accumulated know-how in global marketing to reach a wider customer base for Qatar Steel’s products internationally, which will in turn augment Qatar Steel’s ability to achieve higher netbacks in newly penetrated markets.
Having the aforementioned agreement in place will further improve Qatar Steel’s performance by decreasing the transportation and shipping costs as well as provide more innovative and efficient logistic capabilities.
This agreement will make Muntajat the sole marketer and distributor of Industries Qatar’s finished products, which will increase the ability to achieve synergies at a group level through being more efficient in both import and export shipping activities, thus providing for further cost reduction.
Muntajat (Qatar Chemical and Petrochemical Marketing and Distribution Company Q.J.S.C.), is a state-owned company established in 2012 to serve as the exclusive marketer, distributor and seller of over 13.6 million metric tons of chemical and petrochemical products.
With a global marketing network of offices around the world, a diversified portfolio of high quality polymer, chemical and fertiliser products from renowned producers in the industry and a network servicing more than 3,000 customers in 135 countries; Muntajat delivers value to Qatar’s downstream industries, capitalising on its unique business model, economies of scale, capturing new opportunities, expanding the reach of its trusted brand globally and providing world class customer service.
Originally incorporated in 1974, Qatar Steel Company is fully-owned by IQ and has several investments in the steel industry including, the subsidiary, Qatar Steel Company FZE, and three associates, Foulath Holding B.S.C., Qatar Metals Coating Company W.L.L and SOLB Steel Company.