1. 27-28 April 2015 Eng. Mubarak Yusuf Al-Kawari Presented by:
Energy Expert
Industrial Investment Department - GOIC

2. CORRUGATED HDPE PIPES PROJECT

3. Corrugated HDPE Pipes Product Overview Production Routes & Process
Why this project for Qatar
Production Process
Production Units and Key Machinery
Production Inputs
Market Analysis
Market Overview
Key Project Parameters
Project Development Overview
Key Project Indicators
Conclusions

4. Product Overview
Corrugated Pipes are manufactured from HDPE resins. High-density polyethylene (HDPE) is a versatile material and has some ideal characteristics for use in underground structures. HDPE pipe is relatively lightweight allowing for easier and less costly transportation and installation costs.
HDPE corrugated double wall pipes of ring stiffness SN 8 with diameters ID range of 150 to 700 mm with reinforced inline belling.
The main properties which enable the pipes to perform satisfactory after an extended period of operation under typical service conditions are as follows:
Due to the low weight, the production speed of corrugated pipes is clearly higher compared to smooth pipe
The specific structure of a corrugated pipes result in a saving of weight of up to 60% (compared to smooth pipes of same diameter and ring stiffness)
Corrugated pipes are easier to handle and can be installed without heavy equipment.
Pipes made of HDPE offer a higher resistance to aggressive substances.
High-quality corrugated plastic pipes resist a deflection of up to 30%.
Corrugated pipes have a much higher ring stiffness than smooth pipes of the same weight.
The smooth surface of the inner layer of double wall corrugated pipes guarantees an excellent water flow.

5. Production Route & Process
The technology is a modern thermoplastic extrusion technology.
High output, latest technology extruders and matched ancillary equipment are utilized.
Full automatic, centralized lubrication system guarantees maintenance-free operation.
Production Process
Production Process
The production line consists of two large extruders, dies, corrugators, cutting saw, and stacker. A comprehensive array of product sizes is possible through the simple replacement of molds and dies.
Raw materials-HDPE resin, fed into the extruder. This is then placed in corrugated molds. After cooling, an automated sensor cuts the pipes to desired lengths and stacks them for transportation to the stockyard.
The production process can be broadly divided into 5 stages:
Compound Mixing
Extrusion
Corrugation
Cooling
Cutting

6. Why This Project for Qatar ?
There is no production facility for Corrugated HDPE Pipes in Qatar.
Due to boom on construction the demand is growing. Corrugated HDPE Pipes mainly be used in the construction sector for the drainage system.
Input materials are available in Qatar /GCC
Key Applications
Sewer systems both urban and industrial
Rainwater / Storm water drainage
Various special solutions for industry and business
Resident housing construction
Water Pipes (not for drinking), agriculture pipes, industrial pipes

7. Production Main Process
Process Flow Chart
Mixing
Extrusion
Corrugation
Cooling
Cutting
Dispatch
Process Flow Diagram

8. Production Units & Key Machinery
HD 1200 Corrugated Pipe Production line

9. Production Inputs MATERIALS UTILITIES HDPE: 2000 Tons/y.
Master batch: 20 Tons/y
Steel Band: 2 Tons/y
MATERIALS
Electric Power : 8.8 million kWh /year
Process Water : 1,750 M3/year
UTILITIES

10. Expected After 5 years-2018 (Ton)
Market Analysis
Expected After 5 years (Ton)
Project Sales (T)
Current Import (T) Year 2013

11. 2013 Market Overview Region Demand (T) Supply (T) Gap (T) Qatar 191
Other GCC
1342
All GCC
1533

12. Employment Creation (Nos.)
Key Project Parameters
HDPE ,000 t/y
Corrugated HDPE Pipes
2,000 Tons/y
Plant Area
CAPEX
Employment Creation (Nos.)
ROI
Installation Period
Skilled : 9
Unskilled: 8
3,650 m2
57.59
QR Million
25.8%
17 Months
Total : 17

13. Total CAPEX is QR 57.59 Million
Project Development Overview
Total CAPEX is QR Million
Plant & Machinery
Buildings & Civil
Preoperative Cost
Other Fixed Assets
Working Capital
Capex Parameters
37.0
(QR Million)
(QR Million)
0.46
(QR Million)
0.75
(QR Million)
(QR Million)
Total Production Cost
Raw Material Cost
Operating Cost
Sales Revenue Expectation
Net Profits
Annual Financial Information on:
21.10
(QR Million)
11.68
(QR Million)
15.9
(QR Million)
34.14
(QR Million)
13.04
(QR Million)

14. Key Project Indicators
Project Appraisal
Means of Financing
Parameters
Base Case
IRR on total Investment (Project)
26%
Return on Equity (ROE)
39%
NPV on investment at 10%
49.32 QR Million
Break Even Point (% of Sales)
36%
Project’s Payback Period
3.8 years
Mode
Distribution of Debt
Equity (50%)
QR 28.8 Million
Term Loan (50%)

15. Conclusions No similar plant in Qatar
Availability of raw materials locally/GCC
Fast growing market
Good market & profitability

16. Thank you Gulf Organization for Industrial Consulting
Po Box: 5114 – Doha – State of Qatar
Tel: (+974) Fax: (+974)
– Website: http//goic.org.qa