Tasnee Announcess the delay of operation for Titanium Ilmenite Smelter Plant






Refer to the previous announcement published on Tadawul on Jun 5th, 2017 regarding the Ilmenite Smelter Project to produce high-grade Titanium feedstock (the ‘Plant’), The National Industrialization Company (TASNEE) announces that during the start-up of Furnace 1 of the Plant, a technical issue was encountered. In order to fully assess the technical issue and ensure the safety of employees the Furnace 1 was shut-down on Sunday October 29th, 2018. While the Furnace 1 is cooling down over the next month, we will work together with Outotec, the EPC Contractor who has designed and constructed the Plant to examine and identify the root causes of the need to shut-down, together with the support of Tronox under the Technical Services Agreement. It is our plan to re-start Furnace 1 during the second half of 2019. Once the root cause for the Furnace 1 shut-down has been determined and resolved, Cristal currently intends that Furnace 2 will be commissioned (after completion of the commercial production of Furnace 1).
The financial impact of this project on TASNEE's consolidated results cannot be determined at this stage. Any further developments about the project shall be announced appropriately.
Please note that TASNEE owns 50% of this Project and the rest is owned by Cristal (which is 79% owned by TASNEE).