Posted on October 15, 2015

QPMC has strategically launched gabbro sales to local construction companies earlier on August 20th after is has secured supply agreements procuring nearly 22 million additional tons of primary materials by private Qatari companies that operate overseas quarries.

In view of its new vision, QPMC has signed a new offtake agreement with Village Trading Group for the supply and delivery of high Gabbro products with the capacity to supply 30,000,000 million tons of high quality quarry products.The signing ceremony took place at QPMC headquarters and was attended by top officials. The applauded agreement was signed by Mr. Essam Al-Abed, Village Trading Group CEO and Engineer Eisa Al-Hammadi, QPMC CEO. Under the terms of the agreement, Village Trading Group has agreed to supply QPMC with 6,000,000 million tons of Gabbro Aggregates annually over the next five years.

In planning the import of the required quantity,Village Trading Group is committed to provide QPMC with gabbro aggregates abiding with the following grades: 0-5 mm Gabbro as well as 5-32mm grades, commencing January 1st, 2016. It is worth mentioning that all grades supplied to QPMC match the Qatar Construction Specifications (QCS) and Ashghal’s specifications and quality standards. QPMC plays its part in ensuring that the construction sector continues to progress in the right direction by securing the required materials, by facilitating the stability of prices and by ensuring the regular availability of materials. 

QPMC signs a new offtake 1 [qatarisbooming.com].jpg

Along these lines, QPMC’s CEO, Engineer Eisa Al-Hammadi said the company seeks to “stabilize the prices of primary infrastructure materials and establish quality standards for aggregates and limestone in the long-term as part of its pivotal role in the country’s infrastructure development on the instruction of the Qatari government.” From his part, Village Trading Group CEO, Mr. Essam Al-Abed said, “It is imperative for us to benchmark and partner with QPMC whilst supporting its new vision which is strategically aligned with Qatar’s sustainable development and comes at the forefront of the Qatar National Vision 2030 and the National Development Strategy. It is a pride for us to partake in the nation’s imperative development thrives.”

Mr. Al-Abed added, “Village Trading Group established in 2005, offers specialized services to the construction industry, has a unique full operational cycle by supplying construction materials from the source "Combined Mining And Shipping" operations in Fujairah , RAK – UAE to the markets in the state of Qatar via 2 ships of a total capacity of 90000 MT and our fleet of 60 trucks loading / discharging from Mesaieed Port & the Pearl Qatar to our customers in order to secure a regular supply of Gabbro Aggregate and Limestone.”

In parallel, the Public Works Authority (Ashghal) and QPMC had also recently signed a framework of agreement and according to the agreement, QPMC will supply Ashghal with 91 million tons of gabbro and limestone for the next five years, making it one of the main customers of QPMC and a catalyst for infrastructural development in Qatar.

QPMC signs a new offtake 2 [qatarisbooming.com].jpg

The decision to launch sales of primary materials on the local front, through a central entity, QPMC in this case, will allow QPMC’s strategic partner Ashghal and the Qatari contracting companies involved in construction projects in general, to take advantage of competitive prices and guaranteed quality noting that the signed agreements include various specifications of primary materials to suit all construction requirements. Additionally, to maintain transparency while keeping cost to a minimum without compromising on quality, QPMC adopts the FIFO (first in first out) mechanism which means the materials entering the storage facility first will be sold first.

To account for the increasing demand on primary materials amidst the thriving construction sector, it is worth mentioning that QPMC is increasing the capacity of the bulk materials with the construction of the Gabbro Berth Terminal in Mesaieed Port, which will have an unloading capacity of 34 million tons a year. In Lusail, QPMC’s jetty will supply 3 million tons of construction material per year to support all construction work in the new city. QPMC has also set up two floating jetties in RasLaffan to supply the needed primary materials; with total port receiving capacity of 9 million tons a year; pointing out that all ports operate around the clock.

Qatar Primary Materials Company (QPMC) has recently signed five agreements with private sector establishments for the supply of primary construction materials to the Qatari market, mainly gabbro and limestone.

Categories: