Tasnee says titanium sponge JV to start ops in H2-17

The National Industrialization Co.’s (Tasnee) new venture designed to produce titanium sponge will start commercial operations in the second half of 2017, the petrochemical producer said in a statement to Tadawul on Thursday.

Advanced Metal Industries Co. (AMIC), which is equally owned by Tasnee and Cristal, has completed all required procedures to establish the Advanced Metal Industries and Toho Titanium Co., Ltd. 

The new entity will own and implement the titanium sponge production project with a capital of SAR 412.5 million.  The initial titanium sponge project capacity will reach15,600 tons/year at an estimated cost of $440 million.

AMIC owns 65 percent of the project and Toho Titanum hold and 35 percent. Tasnee's share in the new capital for the project is self-funded, the statement said, adding that the related financial impact could not yet be determined.

The titanium sponge project and the ilmenite smelter are major downstream projects in Tasnee’s titanium value chain.