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The Royal Commission for Jubail and Yanbu (RCJY) today signed a deal with Tasnee’s fully-owned Advanced Metal Industries Complex to lease an industrial land and build a titanium sponge plant worth nearly SAR 1.6 billion.
Under the agreement, the company will expand the existing facility by using high-pressure oxidation to produce Titanium dioxide (TiO2), a plan that’s estimated to cost SAR 1.35 billion.
Operation and production in both projects is scheduled to start in early 2017.
Total output is said to stand at 1,560 metric tons per year of titanium sponge and 120,000 tons of TiO2.
Titanium sponge is an intermediate product that is purified into ingots and mill products.
The new facility will be established near Cristal’s plant in Yanbu Industrial City.
Last year, Argaam reported that Tasnee and Cristal had entered into a joint venture with Japan’s Toho Titanium Co. to build a titanium sponge production facility in the area.
Tasnee and Cristal each have a 32.5 percent stake in the project, while Toho Titanium owns 35 percent.
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