Outotec in $433m Saudi smelter deal

Updated 02 June 2012

Outotec in $433m Saudi smelter deal

Outotec has agreed with Cristal Global, the second largest titanium dioxide pigment producer in the world, on the design and delivery of technology and services for new ilmenite smelting facilities to be located in Jazan Economic City, as well as installation and construction of the plant on a pure turnkey basis.
The overall contract value exceeds 350 million euros ($433.2 million), which will be booked in Outotec’s second quarter order intake with the revenues recognized gradually over three years.
The order supports Outotec’s long-term growth and profitability targets and does not affect the company’s financial guidance for 2012.
Ilmenite is an iron titanium oxide and the primary ore of titanium. It is also used in the manufacture of titanium dioxide, a bright white powder used as a base pigment in paint, paper and plastics. Cristal Global has ilmenite mines in Australia and pigment plants in Saudi Arabia, the United States and Europe.
In this new mega size ilmenite smelter, Outotec’s ferroalloy smelting technology is applied for processing the ilmenite to titanium dioxide slag. The plant’s initial annual capacity will be 500,000 tons of titanium dioxide slag, and its design enables expansion to one million tons.
In addition, the plant will produce 235,000 tons of high purity pig iron as a valuable co-product.
Outotec’s scope of delivery includes basic and detail engineering, process technology, supply of all equipment, site preparation and civil works, equipment installation, construction and commissioning of the ilmenite smelting plant on a pure turnkey basis. The new plant is scheduled to be operational in 2014, after which Outotec will provide operate and maintenance services for the first two years with an option to continue.
“The demand of titanium dioxide is growing rapidly in Asia along with the growing middle class,” says Outotec CEO Pertti Korhonen.
“Outotec’s ferroalloy smelting is the Best Available Technology, BAT as defined by European Union, and I am excited about the opportunities of this technology in sustainable pigment production. I am also very happy about the implementation concept of this large project. Our global resources will be used effectively for the customer: Engineering and project management will be done in Finland, manufacturing globally and civil and construction in Saudi Arabia by Outotec’s international site team,” the CEO said in a press release.

 


UAE to boost strategic stockpile, says vice president

Police car patrols Al Ras district, famous for its gold and spice markets, after a full lockdown, following the outbreak of the coronavirus disease (COVID-19), in Dubai, United Arab Emirates, March 31, 2020. (REUTERS)
Updated 42 min 48 sec ago

UAE to boost strategic stockpile, says vice president

  • Emirati central bank to guarantee liquidity in banking system, boosting its stimulus package to $70 bn

DUBAI: The United Arab Emirates will reinforce its stockpile of strategic goods and will waive residency visa fines for the rest of the year in response to the coronavirus outbreak, its vice president said on Sunday.

Tweeting after a Cabinet meeting, Sheikh Mohammed bin Rashid Al-Maktoum, who is also the UAE prime minister and ruler of Dubai, said authorities had directed factories to support the health sector’s needs in the country, which has recorded 1,505 infections and 10 deaths.
Dubai imposed a two-week lockdown on Saturday night, tightening an overnight curfew that the whole of the UAE has been under for 10 days. Daily new cases have increased recently as testing has been stepped up.
The UAE central bank also announced new measures on Sunday to guarantee liquidity in the banking system, boosting its stimulus package to a total of $70 billion from a previously announced $27 billion.
Meanwhile in neighboring Kuwait, the governor of the central bank said the country’s banks can continue to distribute dividends for 2019 and it is early to ask them to suspend dividends for 2020.

FASTFACT

• Tweeting after a Cabinet meeting, Sheikh Mohammed bin Rashid Al-Maktoum, who is also the UAE prime minister and ruler of Dubai, said authorities had directed factories to support the health sector’s needs in the country, which has recorded 1,505 infections and 10 deaths.

• In neighboring Kuwait, the governor of the central bank said the country’s banks can continue to distribute dividends for 2019 and it is early to ask them to suspend dividends for 2020.

“The exchange rate system is excellent and there is no fear for the Kuwaiti dinar,” said Mohammad Al-Hashel, adding that banks’ average capital adequacy ratio was above 18 percent. The minimum ratio has been reduced to 10.5 percent, the governor said.
Last week, the Central Bank of Kuwait (CBK) announced a stimulus package to support vital sectors and small and medium enterprises amid the fallout from the coronavirus epidemic.
The measures will raise banks’ lending by 5 billion dinars ($16 billion), the Kuwait Banking Association said last week.
Hashel said banks had agreed to refrain from liquidating collateral assets like real estate or stocks, unless customers ask for it, “to avoid any serious decline in the markets.”
Banks should not be “very strict” in refraining from lending, he said.
He added monetary policy measures taken so far were adequate, but the central bank was ready to act again if necessary.