Qatar's first PVC factory was put into operation in September, with an annual output of 350000 tons, mainly for the European market.

Qatar Ethylene Company recently announced that it will start polyvinyl chloride (PVC) production in September at its new plant in Maisid. The plant will be Qatar's first PVC production facility with a designed annual capacity of 350000 tonnes, marking a major step in the country's diversification of the chemical industry.

Project development process

the PVC production project was initially announced in April 2022 and was approved by the government in October of the same year. After nearly two years of construction, the plant is about to be officially put into operation, which will significantly enhance Qatar's position in the global PVC market.

Qatar Ethylene Company Capacity Profile

currently, Qatar Ethylene's annual capacity portfolio includes:

• caustic soda: 370000 tons
• dichloroethane: 180000 tons
• vinyl chloride monomer: 355000 tons
• 32% hydrochloric acid solution: 15000 tons

with the production of PVC production line, the company will form a more complete chlor-alkali chemical industry chain.

Europe is the main target market

according to sources, as the plant's production capacity far exceeds Qatar's domestic demand, the market expects Europe to become its main export target market. This strategic choice reflects the importance that Qatari companies attach to the European PVC market and will also bring new sources of supply to the local market.

The European PVC market faces multiple challenges

at present, the European PVC market is facing a complex competitive environment, the main challenges include:

• weak demand: European construction and packaging industry demand continues to be sluggish
• global excess supply: Capacity expansion in multiple regions leads to ample supply.
• Product Competition in Asia: Low-priced imports from Asia intensify price competition

adjustment dynamics of production facilities in Europe

in the face of market pressure, a number of European companies have announced capacity adjustment plans:

• vinova Corporation: Announces the cessation of PVC production at the Baker plant in the Netherlands
• dow Chemical: Plans to shut down chlor-alkali and PVC production units at Schkobo plant in Germany by the fourth quarter of 2027

market balance still takes time

despite a number of capacity shutdown measures in Europe, market participants said that the Europe-Middle East-North Africa PVC market still needs further adjustment to achieve a balance between supply and demand. The commissioning of new production capacity in Qatar will increase market supply pressure in the short term, but may promote the reshuffle of regional markets in the long term.

Impact on the global PVC market

the production of the PVC plant in Qatar will not only change the pattern of the chemical industry in the Middle East, but also have an impact on the global PVC trade flow. As more Middle East production capacity enters the market, it is expected to further intensify the competitive situation in the global PVC market.