AN N UAL R EPO R T 2013 40 YE A R S O F PR O D U C T I O N

40 YE A R S O F PR O D U C T I O N
 His Highness His Highness
Sheikh Tamim Bin Hamad Al-Thani Sheikh Hamad Bin Khalifa Al-Thani
Emir of the State of Qatar Father Emir

AN N UAL R EPO R T 2013 40 YE A R S O F PR O D U C T I O N

 Board of Directors

H.E. Abdulaaziz Bin Ahmed Al-Malki Mr. Khalifa A. Al-Sowaidi

Chairman Vice Chairman and CEO

Mr. Hamad R. Al-Nuaimi Mr. Jorgen Ole Haslestad Mr. Nasser J. Al-Kuwari
Director Director Director

Meshaal M. Al-Mahmoud Mr. Saeed M. Al-Kuwari Mr. Jan Duerloo

Director Director Director

AN N UAL R EPO R T 2013 40 YE A R S O F PR O D U C T I O N

 C o n t e n t s

1. Business Policy 10
Vision
Mission
Objectives
2. Qatar Fertiliser Company 11
Introduction
Historical Milestones
Products
3. QAFCO Downstream 15
Gulf Formaldehyde Company
Qatar Melamine Company
4. Chairman’s Message 17
5. Management Report 19
Production
Shutdown
Plant Maintenance
Human Resources

YEARS

QAFCO Management Systems
Quality
o f e c o - f r i e n d ly
Safety
o p erat i o n s
Environment
Projects
Major Events
6. Independent Auditors’ Report 31

P.O.Box: 50001, Mesaieed - Qatar

Tel: (974) 44228888, Fax: (974) 44770347
E-mail: admin@qafco.com.qa
www.qafco.com

AN N UAL R EPO R T 2013 40 YE A R S O F PR O D U C T I O N

Business Policy Qatar Fertiliser Company
Qatar Fertiliser Company (QAFCO)
Gulf Formaldehyde Company (GFC)
Qatar Melamine Company (QMC)

Our Mission
We shall operate the plants Efficiently, Safely and in an Environmentally Responsible manner to Produce and Dispatch Ammonia, Urea, Urea
Formaldehyde and Melamine at the Quality required by Customers and to carry out investments to Maximize Shareholders Returns.

Our Vision
Maintain QAFCO as the largest Quality Ammonia and Urea Producer.
Satisfy QAFCO’s Need for Urea Formaldehyde.
Quality Melamine Producer.

OUR MAIN OBJECTIVES ARE TO:

Achieve highest possible production at comparatively low cost.
Operate the plants with maximum online factor.
Design and operate the plants in a safe, secure and environmentally responsible manner.
Meet customers’ expectations with regard to Quality and Timely Dispatch of our products.
Supply QAFCO with quality Urea Formaldehyde. Qatar Fertiliser Company (S.A.Q) (“the Company”) was incorporated on 29 September 1969 as a Qatari Shareholding Company in the State
of Qatar. The Company is engaged in the production and sale of Urea and Ammonia.

The shareholders and their shareholding interests in the Company are as follows:

WE ARE COMMITTED THROUGH OUR Name of the shareholder Country of incorporation Interests
Comply with all relevant Qatari Legislations, Regulations and
OCCUPATIONAL HEALTH & SAFETY, Standards adopted by the Company. Industries Qatar (IQ) Qatar 75%
ENVIRONMENTAL, QUALITY AND Yara Nederland BV Netherlands 25%
RESPONSIBLE CARE INTEGRATED Communicate this Policy and systems performance measures
to our employees, contractors and other stakeholders including
MANAGEMENT SYSTEMS TO: public and make it available to them and other interested
IQ is the immediate parent of the Company, which is a 70% owned subsidiary of Qatar Petroleum (QP). Thus QP is the ultimate parent of the
Company.
parties.
Lead QAFCO in ethical ways that increase the benefits to
society by protecting our employees, environment and QAFCO’s inception in 1969 as a joint venture company to produce chemical fertilisers was the first and a significant step in Qatar’s industrial
Monitor, study, assess for significance and record the
community. diversification program to utilize its abundant natural gas resources. Since then QAFCO has steered its way successfully, responding adequately
environmental impacts of our operations for possible
reductions. to the world market demand for fertiliser and living up to the expectations of its shareholders, IQ and Yara.
Increase the competency of personnel and use of technology
to enhance Customers Satisfaction, environmental, safety, QAFCO inaugurated its first plant in 1973 with a design capacity of 900 tons of Ammonia and 1000 tons of Urea daily. Presently QAFCO
Encourage re-use and recycling and manage our solid waste
health and security performance. complex comprises five completely integrated trains: QAFCO-1 (1973), QAFCO-2 (1979), QAFCO-3 (1997), QAFCO-4 (2004), QAFCO-5
to reduce environmental impacts.
(2011) and QAFCO-6 (2012). Each train is made up of two units, one for production of Ammonia, and the other for Urea.
Prevent pollution and control operational and security risks Conduct regular reviews of relevant Occupational Health,
in order to protect the environment, the safety and health of our Safety, Security, Environmental, Quality and Responsible Care
employees, contractors, visitors, neighbors and the community. activities for compliance with the adopted Standards.
Through scientific strategic plans and integration of the latest technologies, QAFCO has
Steward our products and services through each life cycle
stages in order to protect people and the environment.
Open information, communication and sharing of experience developed steadily, over the years, in terms of nameplate capacity, production quantities,
with all parties affected by or interested in our activities on
safe use, transportation and disposition of our products quality and competitiveness of products and become one of the main producers and
Implement Occupational Health & Safety, Environmental, and to recognize, respect and respond to our community
Quality and Responsible Care Integrated Management Systems concerns about our products and operations. exporters of ammonia and urea in the world. Today, Qatar, after the inauguration of the
as a prime line responsibility at all levels of our organization and
continually improve their performance and effectiveness. Work with Government, Agencies and Associations at all
sixth Urea facility at QAFCO, is the 4th largest Urea producer in the world with an export
Involve and consult our employees on matters related to our
levels in the development of effective and efficient health, market extending to more than 35 countries across the continents. Qatar is poised to be
safety, security, environmental laws and in industry standards
Integrated Management Systems. and supporting research. the largest Urea exporter in the world.

10 AN N UAL R EPO R T 2013 40 YE A R S O F PR O D U C T I O N 11

 Historical Milestones
1973 - Inauguration of QAFCO-1
1979 - Inauguration of QAFCO-2
1997 - Inauguration of QAFCO-3
2003 - Gulf Formaldehyde Company established.
2004 - Inauguration of QAFCO-4
2004 - Inauguration of QAFCO’s Ammonia vessel LPG/C Al Marona.
2006 - Qatar Melamine Company established.
2008 - Foundation stone laid for QAFCO-5.
2009 - Construction starts for QAFCO-6 expansion project.
2009 - QAFCO adopts new brand identity.
2010 - Qatar Melamine Company inaugurated.
2011 - First sale of Aqueous Ammonia for DeNOx application.
2011 - Inauguration of QAFCO-5
2012 - Inauguration of QAFCO-6

Our products
Ammonia
Urea – Prilled and Granular
Urea Formaldehyde
Melamine

Ammonia
Ammonia is a chemical compound made of Nitrogen 82% and Hydrogen 18%. It is produced using Natural gas as the main feedstock. The other
feeds required are Steam and Air. These feed materials undergo a series of reactions in the ammonia plant, before Ammonia is produced in
gaseous form. This is turned into liquid under pressure and cooling down. Ammonia is stored at a temperature of minus 33 deg centigrade in a
specially refrigerated Ammonia storage tank.

Urea – Prilled and Granular

YEARS Urea is a solid fertiliser containing 46.6% of Nitrogen. It is produced by the reaction of Ammonia and Carbon Dioxide under high pressure, both
feedstocks being supplied by the Ammonia plant. The urea produced in solution is turned into a solid fertiliser of spherical granules, in the final
of ensuring section of Urea plant called Granulation Unit.

g reat er h ar v es t s
Urea Formaldehyde Condensate
UFC-85 is a viscous liquid containing 60% Formaldehyde, 25% Urea and balance water. Formaldehyde is first produced by the reaction of
Methanol with air. This is then absorbed in Urea solution to form UFC-85. Urea Formaldehyde Condensate (UFC-85) is an additive, which is
added to the Urea product to improve its strength. UFC-85 is used as an anti-caking agent for the Urea.

Melamine
Melamine is used in the synthesis of Melamine Formaldehyde (“MF”) and Melamine Urea Formaldehyde (“MUF”) resins, which are used mainly
for laminates, wood adhesives, surface coating, paper, textile treatment and for molding compounds.

12 AN N UAL R EPO R T 2013 40 YE A R S O F PR O D U C T I O N 13

 Awards and Recognitions
QAFCO has received various certifications from international bodies and institutions for its compliance against internal standards. The details of
the certifications received are highlighted below:

QAFCO MANAGEMENT SYSTEMS CERTIFICATE:

QAFCO Downstream

Gulf Formaldehyde Company

Gulf Formaldehyde Company (Q.S.C) was incorporated on 3rd March
2003 as a private Shareholding company. All the shareholders are
Qatari Companies in the State of Qatar. The company is engaged in the
production and sale of Urea Formaldehyde Concentrate (“UFC”).

The Shareholders and their shareholding interests in the company are as follows:

Name of the shareholder Interests

Qatar Fertiliser Company 70%

YEARS
Qatar Industrial Manufacturing Company 20%
United Development Company 10%

o f g reat s o c i a l
commitment

Qatar Melamine Company

Qatar Melamine Company was established following a Shareholders
and Services agreement between Qatar Fertiliser Company and Qatar
Holding to produce and sell Melamine.

Name of the shareholder Interests

Qatar Fertiliser Company 60%

Qatar Holding 40%

14 AN N UAL R EPO R T 2013 40 YE A R S O F PR O D U C T I O N 15

 Chairman’s Message
H.E. Abdulaziz Bin Ahmed Al-Malki
Chairman, QAFCO Board of Directors

In 2013, we completed 40 years of production. The forty years saw QAFCO’s Ammonia and Urea
manufacturing capability increasing from a mere 900 MT/day and 1000 MT/day respectively
to 9300 MT/day of Ammonia and 14,900 MT/day of Urea. It is a phenomenal achievement as
QAFCO became the largest single site producer of Ammonia and Urea in the world.

In the meantime, QAFCO also diversified into producing Urea Formaldehyde, Melamine
and Aqueous Ammonia. QAFCO has built the capacities to produce 60,000 MT of Urea
Formaldehyde, 60, 000 MT of Melamine annually. Our diversification into Aqueous Ammonia,
a highly effective agent in reducing NOx emissions complements QAFCO’s strong commitment
towards protecting the environment.

And the journey continues.

In the year 2013, QAFCO produced 3.6 million MT of Ammonia and 5.5 million MT of Urea.
Melamine production for the year touched 60,523 MT in response to market demands. En route,
to these excellent figures, QAFCO had some remarkable achievements as well. On the 27th
December 2013, QAFCO produced 10,665.7 MTPD and 16,670 MTPD of Ammonia and Urea
respectively – a production history. Meanwhile, Urea Formaldehyde and Melamine production
was at 59172 MT and 60523 MT respectively.

On the sales front, Ammonia sales volume stood at 615,000 MT, as compared to 683,000 MT
last year. Meanwhile, 5.4 million MT of Urea was sold in the year 2013 as compared to 4.2
million MT in 2012.

The profits stood at 3.9 billion Qatari Riyals. The profits were slightly offset compared to 2012
due to negative sales price of Urea in the international markets.

We maintained our reputation of being one of the most environmentally responsible plant
operators in the world. Our safety performance was satisfactory.

On the Qatarisation front, QAFCO continues to work on its efforts to meet the targets set by
Qatar Petroleum. Focus has been on to attract Qatari nationals and train and develop them to
take up leading technical and non-technical positions in QAFCO.

To conclude, I am happy to note that we scrupulously moving towards achieving the vision of His
Highness Sheikh Tamim Bin Hamad Bin Khalifa Al-Thani, Emir of the State of Qatar. I am grateful
to the guidance given by HE Dr. Mohammad Bin Saleh Al Sada, Minister of Energy and Industry
and the QAFCO board. I express my gratitude towards Industries Qatar, Yara Nederland and
QAFCO Management and staff who worked hard towards QAFCO achieving its potential.

H.E. Abdulaziz Bin Ahmed Al-Malki

Chairman, QAFCO Board of Directors

16 AN N UAL R EPO R T 2013 40 YE A R S O F PR O D U C T I O N 17

 Management Report
With various initiatives and process improvements QAFCO is well
and truly on its way to move forward and do its part in helping to
feed the world.
2013 was the year of 40th year of production at QAFCO. It has
been a long journey indeed from a single plant to a site with 6
state-of-the-art of Ammonia and Urea production units, producing
3.8 million MT of Ammonia and 5.6 million MT of Urea respectively.
QAFCO’s diversification programme has also yielded amazing
results with 2 Urea Formaldehyde plants and one Melamine plant
with annual production of 60,000 MT of Urea Formaldehyde and
60,000 MT of Melamine.
PRODUCTION
QAFCO Ammonia and Urea production continued to achieve new
heights.
Records 2013:
Records 2013:
Highest ever daily Ammonia production in QAFCO
achieved on 27th December 2013: 10,665.7 MT
Highest ever daily Urea production in QAFCO
achieved on 27th December 2013: 16,670.8 MT
Ammonia
QAFCO operates six ammonia plants with a combined production
YEARS
capacity of 3.8 million MT per annum at its existing facility (QAFCO
1 to 6) in Mesaieed, Qatar. In the year under review, QAFCO
o f f r u i t f u l i n i t i at i v es produced 3,641,331MT, the highest volume in its production
history. Of the total production this year 3,042,026 MT was utilized
in QAFCO for the production of Urea, Aqueous Ammonia and
Melamine.
Ammonia & Urea production in the last five years
18 AN N UAL R EPO R T 2013
Urea
QAFCO operates six Urea plants with a combined production
capacity of 5.6 million MT per annum in the year under review,
QAFCO produced 5.5 million MT of Urea, highest in QAFCO’s
production history.
ACHIEVEMENTS
During the year 2013 due to excellent production performance of
all the plants QAFCO achieved new records of Ammonia and Urea
production. Apart from production performance, the following have
been achieved:
QAFCO-5 & 6 plants have been certified for Integrated
Management Systems.
Urea-5 plant has achieved first TWO million ton of Urea
production while Ammonia-5, Ammonia-6 and Urea-6 have
achieved first ONE million tons production mark.
QAFCO has touched its own record many times during 2013
by loading 5 ships simultaneously. This record was created during
2012
Achieved Highest Yearly Export - Urea: 5.45 Million MT and
Melamine: 59,500 MT
Achieved Maximum number of shipments in one year: 217
ships
This shows QAFCO’s commitment towards Safety, Environment,
Energy efficiency and to achieving customers’ satisfaction and
gaining their confidence through huge production and marketing
capabilities which the Company enjoys, especially after the
successful operation of QAFCO-5 and 6 expansion project that
made QAFCO the world’s largest single-site producer of Ammonia
and Urea.
40 YE A R S O F PR O D U C T I O N
19
MAINTENANCE
Plant Maintenance Benchmarking Study
As part of the Continual Improvement Process, a benchmarking
study was carried out in 2013 in order to compare QAFCO’s
Maintenance Processes and Practices against similar companies
that are located and operated within the Gulf region and globally.
The overall performance is presented in terms of a Reliability and
Maintainability Efficiency Index –RAM EI.
QAFCO was ranked within the top 25% list of companies which is
commonly referred to as First Quartile Performer.
INITIATIVES FOR SUSTAINABILITY
Eliminating defects through effective
SHUTDOWNS 2013 RCA
Shutdown excellence is a journey. Achieving and sustaining excellence is wholly dependent on a site approach of shared accountability and is If the goal of doing Root Cause Analysis is to prevent recurrence
a continually improving process. Advance planning provides the framework for the development of a turnaround premise and defines the key of the problem the challenge lies not so much in who was involved
parameters of turnaround success as well as expectations. but rather emphasizing, or focusing, on what you can do to stop
it from happening again. This focus will lead to gathering more
factual information which is the essence of understanding the
problem first and foremost.
Above is a multidiscipline QAFCO and vendor specialist team,
led by Reliability Section, and highly focused on a failure analysis
study with the objective of finding effective solutions to improve
plant equipment reliability.
QAFCO Management supported the selection of the Reality
Chart RCA methodology and made a significant investment to
train approximately 300 staff members to effectively use this
methodology. The implementation of this methodology is in
In 2013, two optimized shutdowns were executed without any lost time incident. QAFCO-4 plants were stopped in September 2013. Both Urea progress with approximately 30 failure analyses being carried out
and Ammonia plants shutdown were completed ahead of schedule. In November, QAFCO-2 plants were stopped for planned shutdown. More using this method and generating value adding solutions. This is
than 8000 activities were planned and executed. Originally, though, Ammonia-2 shutdown scope was planned within the budget of 16 days. certainly a step in the right direction and helps eliminate defects
However, Ammonia-2 shutdown was extended to 19 days in order to include new flare stack tie-in jobs and primary reformer header replacement and improve overall reliability.
job.
Ammonia 4
HUMAN RESOURCES
People are QAFCO’s most valuable resource. As such, the
company is committed to contributing positively to the intellectual
and physical well-being of all of its employees in order to improve
performance, keep absenteeism and turnover rates to a minimum
and create a great working experience, regardless of their race,
colour, religion, gender, national origin, age, disability or any other
basis protected by Qatari laws.
QAFCO’s commitment and dedication to motivate its employees
has gradually improved through Training and Development
Programmes that serve as a key to the following, aiming for a
professional and highly effective workforce in the technical and
non-technical areas:
Continual Improvement,
Provide Quality Employee by Development Programmes,
and develop Employee Skills & Potential.
In the year under review there are 1601 established positions.
Training and development
In order to contribute to the Company’s Policy of Operating the
Plants efficiently, safely, environmentally responsibly and profitably,
QAFCO gives a lot of importance to update the knowledge and
skills of its workforce through training.
Training Courses
With an aim of continuous improvement of skills and knowledge
of the workforce, Training & Development Section arranged the
following Training Courses for QAFCO employees during the year
2013.
Overseas Courses 45
Local Courses 47
In House Courses 143
TOTAL 235

Ammonia 2
Urea 4

Urea 2

20 AN N UAL R EPO R T 2013 40 YE A R S O F PR O D U C T I O N

21
Qatarisation & Development
Training & Development Section plays a pivotal role in developing
the Qatari National workforce by designing appropriate
educational programs, on job development programs and smooth
career paths for them.
63 Qatari Nationals are under the Academic and Development
program of QAFCO (Trainee – 9, Developees - 8, Scholarship
Students – 34, Academic Sponsored Students – 12). In liaison
with concerned Sections, their progress is closely monitored by
Training & Development Section to ensure the overall development
leads in achieving the competency of the targeted position.
QAFCO’s continuous commitment to develop its National
workforce through training and development as envisaged above,
resulted in the movement of trainees and developees to targeted
established positions in the respective area of their specialization,
as detailed below:
In 2013, a total of 16 Qatari Nationals were promoted to
Established Positions (11 from Developee and 5 from Graduate
Trainee)
Qatarisation Intake
As part of the commitment in achieving its goal of Qatarisation,
Training & Development Section recruited/assisted in the
recruitment of Qatari Nationals in 2013.
Positions No. Of Qataris
Graduate Trainees 1
Trainees 3
Sponsorship Students 1
QP TAFE Intake Trainees 15
TOTAL 20
Scholarship Programs
The Company has identified Highl Flyers with excellent
performance/academic record and approved Scholarship/
Sponsorship Programs to pursue Academic Studies locally and
abroad, as part of their Career Path progression. Brief statistics
are given below:
22 AN N UAL R EPO R T
Scholarship and sponsorship studies No. of Students
Local 23
Abroad 21
TOTAL 44
In 2013, a total of 6 Students completed their Scholarship
Studies.
Diploma Studies - 1
Advanced Diploma Studies - 1
Bachelor Degree - 4
Qatar Career Fair
QAFCO participated in the event as part of its efforts to attract
young Qataris and strengthen Qatarisation process. Committed
to its strategic vision to achieve highest standards in progress and
development, QAFCO has actively participated as Pearl Exhibitor
in Qatar Career Fair 2013 and launched a major recruitment
campaign. A number of qualified staff attended to visitors at
QAFCO stand, answered queries pertinent to available work
opportunities at the company and helped interested candidates in
completing application forms.
On the sidelines of the Fair, QAFCO highlighted the company’s
ambitious plans to meet future challenges. QAFCO participated
in the event as part of its efforts to attract young Qataris and
strengthen Qatarisation process, adding that the Career Fair is
an important forum to promote QAFCO. Further, QAFCO present
employment opportunities and requirements, enables young
Qataris discover areas of work specialization, know benefits at
QAFCO and training opportunities the company provides to young
Qataris who work with it.
2013
QAFCO International College Fair
QAFCO actively took part in the International College Fair
organized by the Supreme Education Council (SEC), held at
the Doha Exhibition Centre. Over 90 universities attended the
fair, which opened up great opportunities for students to explore
various higher education avenues.
QAFCO MANAGEMENT SYSTEMS
QAFCO is always committed to uphold superior standards in
Quality, Safety and Environmental performances. Quality, Safety
and Environment are the hallmarks of QAFCO’s products and
production units. It gives a high priority to excellence on all
fronts and adhere to international standards of quality, safety,
occupational health and environment protection.
Quality is our choice
To maintain and improve the high quality of products, QAFCO
implements a stringent quality management program facilitated by
real time monitoring and measurement of production processes
from the incoming raw material to the distribution of final products
as well as by sophisticated laboratory analysis at various stages
of production processes. QAFCO’s product quality is widely
acclaimed within the industry and several agencies have set
high rating for our products such as Level 1 Gold accreditation
by AQIS.
In 2013, the certification scope of QAFCO 1-4 Plants for
management systems (Quality, Environment, Occupational
Health & Safety and RC 14001- Responsible Care) was extended
to QAFCO 5 and 6. And combined certificates for QAFCO 1-6
Plants, GFC and QMC Plants were issued standard-wise by the
certification body - Bureau Veritas. (i.e. One certificate for ISO
9001, one for ISO 14001 and one for OHSAS 18001).
QAFCO received the 2013 winner of IFA Green Leaf Award for
outstanding performance in Safety, Health and Environment
(SHE) in fertilizer production among International Fertilizer
Industry Association (IFA) members.
Safety is our commitment
QAFCO believes that a safe workplace is a material issue for
productive and efficient work. In the year under review, Qafco
continued to have a very high safety record in 2013. The Lost
Time Accidents and Lost Days at QAFCO have been represented
in the graph.
40 YE A R S O F PR O D U C T I O N 23

Shutdown Safety
Safety Section actively participated in QAFCO-4 Major Shutdown
in September 2013. Safety personnel took part in all pre-
preparation meetings and in daily shutdown follow-up progress
meeting. During the shutdown, QAFCO staff had ZERO accident
and contractors have only FIVE First Aid accidents.
QAFCO-2 optimised shutdown was in November 2013 and all
Ammonia and Urea Safety Coordinators participated in all pre-
preparation and daily shutdown follow-up progress meetings.
During this shutdown, QAFCO staff had ZERO First Aid Accident
and contractors had 1 First Aid accident.
Safety Training
Various trainings were conducted by safety staff with the aim
of increasing the Safety awareness among the employees and
contractors and monitored every operation to ensure the intended
results.
Safety Campaigns
Safety campaigns are an effective means of communicating with
our stakeholders. In the year under review, various campaigns
were conducted to increase awareness amongst QAFCO
employees and contractors. These campaigns are well thought
out and address pertinent safety concerns within and outside
QAFCO.
Heat Stress Campaign
Heat stress and Tyre Safety Campaign was conducted in May
and June 2013 with flag posters, roll–up, stickers, and flyers.
The campaign included checking, reviewing and auditing all
the contractors working in coordination with Area Supervisor,
Contractor Supervisor and contractor contact person. Apart from
that, safety section closely monitored Heat Stress Index and
communicated the status with QAFCO contact person.
24 AN N UAL R EPO R T
Defensive Driving Campaign – Going Beyond
QAFCO conducted “Defensive Driving For Families” an audio-
visual training program aimed at QAFCO employees’ families on
defensive driving. The program was a success with more than 110
families attending the program.
Helmet Awareness Campaign
In order to stress on the importance of helmets in an industrial set
up, a Safety Helmet Awareness Campaign was conducted in the
month of March. The campaign was well appreciated.
Safety Awards
QAFCO won Silver Award for RoSPA Occupational materials like posters, wall stickers, labels, etc. to various schools
Health and Safety - 2013.
QAFCO won Gold Award for MORR (Managing Awareness presentation to 31 students from Texas A&M University
Occupational Road Risk) and Safety - 2013.
25 QAFCO Employees received Safety Award related to
reporting of risk, near miss and unsafe condition for
the year 2013
17 QAFCO employees & Trainees received safety award
during Shutdowns.
14 Contractors received safety award & 60 on spot
appreciation award to contractors during Shutdowns.
2013
Environment is our responsibility In 2013, a Literature Review was carried out on predator species
QAFCO has always been striving for greater standards in for replacement of pesticides in Sahara Forest Project.
environmentally responsible operations. QAFCO obtained Consent
To Operate QAFCO 1-4 Plants, De-NOx Infrastructure, Gulf
Formaldehyde Company and Melamine Plants from the Ministry
of Environment. Ministry officials visited QAFCO in December
2013 as part of the CTO Procedure to award Consent To Operate
to QAFCO 5&6. The Ministry of Environment has issued permit
for extra land for QAFCO-5 in 2013. In the year under review,
QAFCO has requested conformation of the location for Air Quality
Monitoring Station for QAFCO 1-4 and QAFCO-5.
MAJOR EVENTS IN 2013
QP Environment Fair
QAFCO participated in the 3-day QP Environment Fair that was
held at the Doha Exhibition Center in April 2013. This event is a
unique medium provided by QP to all the industries to showcase
and present their environmental achievement and initiatives to the
community. The event also serves as a medium for addressing
environmental topics with different entities.
Initiatives
In January 2013, Ministry of Education and Qatar University officials
visited QAFCO to carry out water sampling for Radioactivity and
Mercury in the canal between QAFCO and QAPCO.
To spread the awareness about environment protection, QAFCO
has done various initiatives like distributing grass heads to mark
the Gulf Environment Day and the Earth Day and awareness
in Qatar. The Environment Section has carried out Environmental
of Qatar in March 2013 and Environment Training to Al-Eeman “Kulluna” Fair
Independent School for Girls in October 2013. It also conducted Participated in “Kulluna” (We are all for Children’s Health) fair that
Environmental Awareness course on 81 new employees. was conducted at Mesaieed Primary and Preparatory Independent
School for Girls, from 26-28 November 2013. Kulluna, which means
Sahara Forest Project ‘All of Us’, is a joint initiative between Hamad Medical Corporation
Sahara Forest Project is a joint venture between Sahara Forest and ConocoPhillips. The Kulluna for Health and Safety campaign
Project, Yara and QAFCO. QAFCO and Yara are sponsoring this has taken its vital message to nine Qatar schools, educating
project which is executed by Sahara Forest Project. It focuses children, teachers and parents about health and safety and the
on the Green Technology using seawater and solar energy in a benefits of a healthy lifestyle. Kulluna is based on the belief that
region like Qatar to explore research and commercial potential of everyone can take action to improve health, well being and safety
Horticulture, Freshwater Generation, Energy Production and Algae for themselves, their family and the community.
Production.
40 YE A R S O F PR O D U C T I O N 25
SOCIAL RESPONSIBILITY
As an essential part of its social responsibility Qatar Fertiliser
Company (QAFCO) is keen to actively strengthen the relationship
between the company and the community to which it belong and
operate with. Accordingly QAFCO assumes significant roles in
sponsoring social, cultural, environmental, educational and sport
events and activities held in or hosted by the State of Qatar.
QAFCO Texas A&M conference.
On 10 January 2013 Texas A&M University at Qatar hosted the
sixth installment of the annual QAFCO-Texas A&M at Qatar
Chemistry Conference 2013 at the University’s Engineering
Building at the Education City campus. The conference explored
green chemistry and its application to environmental challenges as
its main focus. The conference featured an impressive technical
program and sessions showcased opinions and research from
some of the industry’s most respected names in green chemistry
and engineering. It provided a forum for an exchange of ideas that
benefit academia, as well as industry.
On October 23rd, 2013 QAFCO signed an agreement with Texas
A&M University to extend it sponsorship of Texas A&M Conference
for another five years. This sponsorship is a continuation of the
relationship that started in 2007.The conference is organized by
the University annually in Doha and it attracts a large number of
experts in chemistry and related disciplines.
4th GPCA Annual Fertilizers Convention,
Dubai
QAFCO sponsored the 4th GPCA Annual Fertilizers Convention,
which took place in Dubai during 22 – 24 September 2013.
26 AN N UAL R EPO R T
QAFCO, besides its participation in the convention, it had the society, especially the youth.” He also appreciated the role
effectively sponsored the participation of a number of professors QAFCO plays at different social levels, citing the show as one of its
and students from Qatar universities and Texas in this convention; important tools to involve community members in various cultural
as QAFCO invited two professors and 18 students from the and social activities.
Engineering and Business Administration colleges of Qatar
University and Texas University in Qatar to attend this
convention.
With this initiative QAFCO has stepped on to a new phase in
educating the youth and developing their skills by introducing
them to the specialized conferences, a step that increases the
Qatari youth’s scientific and practical qualification in order that
they will become the ideal choice for employment in both public
QAFCO Flower and Vegetable Show
and private sectors, which is QAFCO’s vision.
2013
HE Minister of Energy and Industry Dr. Mohammed Bin Saleh QAFCO celebrates National Sport Day
Al-Sada inaugurated QAFCO Flower & Vegetable Show 2013 As part of its social responsibility towards the community
at Al-Banush Club in Mesaieed. The one-day event attracted a and its belief in the importance of sports for a sound body and
huge crowd of participants and visitors from all sections of society mind, QAFCO on the occasion of the second anniversary
including professionals from hotels and nurseries, amateurs and of Qatar National Sport Day (QNSD), stitched a busy
school students involving in floral arrangements, vegetable and
fruit carving, cake and candy decorating, etc. HE Dr. Mohammed
Bin Saleh Al-Sada, Minister of Energy and Industry hailed the
Flower and Vegetable Show and said, “It has an important role
in promoting environmental awareness amongst all sections of
QAFCO Day
QAFCO Annual Day 2013 was celebrated at the newly renovated
Al-Banush Club in a spectacular fashion. QAFCO Day is an
annual get-together function held in January every year, for the
Company’s management and staff. QAFCO CEO Mr. Khalifa
Al-Sowaidi presented the Company’s achievements in 2012
and outlined plans and objectives for the year 2013. He also
schedule, featuring various sport activities. The event was a huge
success with QAFCO employees, their families and Mesaieed
residents from different age groups actively participating in the
event according to their ability and hobby.
awarded the winning employees with Quality and safety awards.
Also the training section distributed its annual awards to a number
of nationals who have successfully completed their development
programmes. The day was marked by a bouquet of entertainment
programmes, lucky draws and a gala dinner.
2013 40 YE A R S O F PR O D U C T I O N 27
 OUR DOWNSTREAM OPERATIONS
Gulf Formaldehyde Company (GFC)
The Gulf Formaldehyde Company (GFC) was created in 2003 and
began operations in 2004. The GFC Plants A and B are designed
to produce 82 and 85 tons per day of Urea Formaldehyde (UFC-
85) respectively, a viscous liquid with 60 percent Formaldehyde,
25 percent Urea and 15 percent of water. Eighty percent of the
UFC-85 produced is consumed by QAFCO and is used as an
anti-caking agent in the production of Urea.
Qatar Melamine Company
QAFCO has utilized its expertise in fertilizer plant operations
to operate and manage a production plant of premium grade
Melamine, based on the Eurotechnica HP process, on behalf of the
Qatar Melamine Company.
The plant performed extremely well in the year under review
producing 60,523 MT of Melamine the highest ever in its production
history. And it was sold at QAR 4772.02 Per MT.
Production & Export of Melamine in the last three years

In the year under review, Gulf Formaldehyde Company produced

QAFCO celebrates Qatar National Day 59,172 MT, the highest ever in its production history. Of this,
Employees from over 35 countries joined together in celebrating Qatar National Day with great patriotic spirit and unity. One of the great 31,423 was produced in the UFC Plant A and remaining 27,748
attractions of the event was the huge Qatari national flag with the photo of His Highness Sheikh Tamim Bin Hamad Al Thani, the Emir of Qatar. was produced in the UFC Plant B. Of the total produced, 49,188
Ham​ed Al-Marwani, Chief Administration Officer said, “The participation of all employees in the National Day celebrations as a family enhances MT was used within QAFCO and the rest was exported within the
the spirit of unity and cooperation among the workforce. On this auspicious occasion, QAFCO, as one of the major ​Qatari companies, reaffirms GCC. In the year under review Formaldehyde was sold at QAR
its commitment to realizing the goals of Qatar National Vision 2030.” 1896.44 Per MT.

Production & Export of Formaldehyde in the last five years

24th QAFCO Open Tennis Championship
The 24th edition of QAFCO Open Tennis Championship was held
with more than 350 players competing in over 400 games over a
period of three weeks. The event, which concluded on November
15, 2013 was attended by many tennis enthusiasts from Qatar.
QAFCO Open has been a fertile ground for many budding talents
QAFCO sponsored the “Made in Qatar”
Exhibition 2013
QAFCO sponsored the “Made in Qatar” exhibition organized at the
Doha International Exhibition Center. The exhibition symbolizes the
Qatar National Vision 2030 of diversifying of country’s economy Into a promising future
from the traditional sectors of oil and gas and expanding it sources QAFCO has been contributing towards realising the vision of

who made their names at the national circuits. of generating national income. QAFCO participated as ‘Gold HH Sheikh Tamim Bin Hamad Al-Thani, Emir of the State

Sponsor’ to the “Made in Qatar” exhibition. of Qatar with its high standards of production and operations. I
take this opportunity to thank HE Dr. Mohammed Saleh Al Sada,
the Minister of Energy and Industry and the QAFCO Board who
QAFCO’s 2012 Sustainability Report achieves GRI’s A+ level
have been giving guidance throughout the year. I am grateful to
QAFCO published its 2012 Sustainability Report, which has achieved the A+ level, the highest according to the guidelines set by the Global QAFCO’s Board of Directors, Management and all employees,
Reporting Initiative (GRI), the world’s most recognized standard for reporting economic, environmental and social sustainability. For its 2012 with whom I look forward to yet another promising year.
Report, QAFCO adopted the most updated version of the GRI reporting guidelines (G3.1).

Speaking on the occasion, Mr. Khalifa Al Sowaidi, QAFCO CEO and Vice- chairman said, “In our second sustainability report, we reassert our
commitment to the principles of Global Compact as we focus on our new initiatives in the field of community engagement, employee relations,
safe workplace and progress on the environmental front. We see this as an opportunity to share our experiences in our journey towards
becoming a sustainable organization.”
Khalifa Abdulla Al Sowaidi
In 2013, QAFCO was the runner-up among organizations with more than 500 employees under the SDIR Programme Awards. The awards
Vice-Chairman and Chief Executive Officer
were developed by QP’s HSE Regulations and Enforcement Directorate over the past three years to recognize high-quality sustainability
reporting and performance.

The report can accessed at www.qafco.qa

28 AN N UAL R EPO R T 2013 40 YE A R S O F PR O D U C T I O N 29

 YEARS
o f o u t s ta n d i n g
production
s ta n d ar d s

30 AN N UAL R EPO R T 2013