UPDATE 2-Qatar fertiliser firm ups output, eyes S. America

* Industries Qatar to up urea production 87 pct by 2012

* Fertiliser unit Qafco sees demand in S. America

* '09 profit to be line with 2007's 2.55 bln riyals

* Shares close 0.65 pct higher, reverse earlier loss

(Recasts, adds profit outlook, analyst, shares)

By Tamara Walid

DOHA, Nov 5 (Reuters) - The fertiliser unit of Industries Qatar IQCD.QA is increasing production of urea and related products to supply growing global demand, focusing on South America, and expects 2009 profit to be in the range of 2.55 billion riyals, executives said on Thursday.

"We are thinking of sending more products to South America -- Brazil -- because it is a big agriculture country, consuming a lot of urea and we see their appetite for urea opening up year after year," Khalifa Al Sowaidi, managing director of Qatar Fertiliser Co (Qafco), said.

Gulf Arab producers of fertilisers have been looking for new markets after penetrating regional markets and feeling the pinch of heavy taxes in the European Union on the competiveness of their products.