Logo of National Industrialization Co. (Tasnee)
National Industrialization Co. (Tasnee) announced that Advanced Smelting Industries Company Limited (ASIC), which is 100% owned by Advanced Metal Industries Cluster (AMIC), one of the former’s affiliates, completed the additional value engineering phase for the restoration of the two furnaces at the Ilmenite Smelter Project, Jazan, aimed at boosting the production of titanium slag.
In a Tadawul statement today, Nov. 2, the company announced that ASIC will continue collaborating with Metso Outotec (the contractor) to enhance furnace-1 and carry out additional value engineering for furnace-2, as per the quality design study, poised for completion in H2 2026.
The project is the first of its size to use the brush arc AC technology for Ilmenite smelting from Metso Outotec. The smelter’s furnace-1 has been successfully ramping up its operations since December 2021. It has been producing on-specification marketable high-quality chloride slag and pig iron, with an electrical capacity of 44 megawatts (compared to the design's 64 MW).
Design modifications and renovation works are anticipated to conclude in the second half of 2026, as such industries need ample time to achieve sustainable operational performance, the company added.
ASIC and Metso Outotec will bear the costs of advancement works for furnace-1 and those related to the design modifications and restoration work of furnace-2, as per the outcomes of the additional value engineering study.
The financial impact on Tasnee's consolidated financial results is difficult to ascertain at present. Fundamental developments, if any, will be disclosed in due course.
The conditional purchase and sale option agreement between Metso Outotec and US chemicals giant Tronox Holdings Plc related to the latter’s acquisition of the smelter project has lapsed, terminating both parties' options without activation.
Tasnee holds a 50% stake in AMIC, with the remainder owned by National Titanium Dioxide Co. Ltd. (Cristal) — which is 79% owned by Tasnee.
Last March, AMIC signed settlement and collaborative refurbishment and optimization works agreements with Metso Outotec for Ilmenite Smelter Project, according to data compiled by Argaam.
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