As Qatar’s Construction Industry Gallops Ahead, Alkhalij Cement Company Announces 50% Increase in Production Capacity

With the construction industry in Qatar is galloping ahead, it is the cement industry that is feeling the strain of the exploding demand for cement. And market players are now responding by swiftly expanding production capacity. The latest in line to do this is the Alkhalij Cement Company, which has announced an investment of US$220 mn on a new cement production line. The company, which comes under the aegis of the Qatari Investors Group, expects that it will be able to command a greater share in the revenue pie by expanding its cement production capacity.

With the new line being made operational in early 2016, Alkhalij Cement Company will be able to boast a 50% increase in its cement production. This capacity addition by cement manufacturers in Qatar is reflective of the high degree of confidence that currently prevails in the construction industry and allied sectors in the country.

Top bosses of Alkhalij Cement Company said that as 2015 draws to an end, the company will be able to produce about 2 Mt of clinker annually whereas cement product is predicted to stand at 3 Mt a year. According to the company’s projections for 2016, the production of clinker will rise to nearly 4 Mt per year and about 4.5 Mt of cement will be produced annually.

It is not just the upcoming FIFA World Cup that’s spurred a series of investments in the Qatari construction industry. Several other infrastructure development plans by the government have put the construction industry into high gear. Qatar has reportedly invested over US$200 bn in the infrastructure sector. The growth in Qatar’s construction sector has been phenomenal in the last few years, and this has also created several new opportunities for companies engaged in ancillary sectors in the country.

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