SR1.6 billion titanium sponge factory on way

Updated 30 April 2015

SR1.6 billion titanium sponge factory on way

The Royal Commission in Yanbu (RCY) has signed a lease for an industrial land to establish a factory for titanium sponge production with an estimated cost of SR1.6 billion.
The contract was signed by Alaa bin Abdullah Nassif, CEO of the Royal Commission in Yanbu, with the Advanced Metal Industries Complex Ltd., a subsidiary company of Saudi Arabia’s National Industrialization Co. (Tasnee).
The company, under the scope of the contract, will also expand the current plant using high-pressure oxidation line technology for the production of titanium dioxide at a cost of SR1.35 billion.
It is expected that the two projects will be completed and start production by 2017.
The construction will be next to the current crystal factory in Yanbu Industrial City.
The total production of the two projects is likely to reach 15,600 metric tons per year of titanium sponge that goes into many high-tech industries, including all types of aircraft components, along with 120 thousand tons per year of dioxide titanium.
Tasnee has also signed a participation agreement for the establishment of a project for the production of titanium sponge with Toho Japanese Company.
The company said that the project will be established in Crystal Complex in Yanbu, with 32.5 percent of the project’s ownership for each of the manufacturing company and Crystal company (belonging to Tasnee), and 35 percent for Toho company.

Air Arabia disclosure draws investor attention to Abraaj fallout

Updated 11 min 33 sec ago

Air Arabia disclosure draws investor attention to Abraaj fallout

Air Arabia’s disclosure that it was an investor in Abraaj has focused investor attention on other market fallout after the buyout firm filed for voluntary liquidation last week.

Air Arabia shares held steady in Tuesday trading, a day after the stock tanked on the revelation the carrier was exposed to Dubai-based Abraaj.

The Sharjah-based carrier’s shares were slightly higher in afternoon trading, after slumping to an 11-month low on Monday.

It said it had appointed a “team of experts” to ensure the airline’s business interests are protected.

The size and nature of the Air Arabia investment was not disclosed.

“It will reduce the appetite for new venture capital or private equity funds,” said Jaap Meijer, head of equities research at Arqaam Capital.

Abraaj filed for a court-supervised provisional liquidation in the Cayman Islands last week, in a bid to head off petitions by creditors to wind up the firm, following allegations of financial mismanagement.

Abu Dhabi Capital Management, a unit of alternative investment group Abu Dhabi Financial Group, has made a conditional offer to buy Abraaj’s investment management business for $50 million, according to a document reviewed by Reuters.