Tasnee eyes high-yield markets, sees Tronox stake as strategic: CEO

Fawaz Al-Fawaz, CEO of National Industrialization Co. (Tasnee)

National Industrialization Co. (Tasnee) CEO Fawaz Al-Fawaz said the persisting global uncertainty, economic challenges, geopolitical tensions, and heightened tariffs are factors weighing on demand outlook and financial performance forecasts.

In an interview with Argaam, the top executive said the Saudi-listed company remains focused on operational efficiency, plant reliability, and site readiness, while prioritizing high-yield markets.

In Q2 2025, Tasnee turned to a net loss of SAR 65.8 million, compared to the prior-year period. Al-Fawaz attributed this to lower selling prices for most end products and weaker sales volumes, which offset gains from an improved product mix that in contrast fueled a notable pick-up in the three-month gross profit.

He also pointed to the reduced profits from joint ventures in Q2 2025, versus the year before. This is besides incurring losses from Tronox Ltd. on broad price drops, closure expenses of a Dutch-based plant, higher input costs, and a Zakat provision.

Meanwhile, the second-quarter gross improved thanks to favorable shifts in Tasnee’s product mix, particularly stronger performance across the acrylic, downstream, and metal products, which in turn supported margin growth, the CEO added.

However, the three-month topline declined due to lower prices and reduced sales volumes. Revenues were also hurt by the recent product mix shifts and higher sales write-offs, compounded by the full consolidation of Saudi Acrylic Monomer Co. (SAMCO) as of Dec. 31, 2024.

According to Al-Fawaz, Tasnee views its stake in Tronox as a long-term strategic investment. Despite the industry's cyclical nature, he expects performance to improve going forward.

Tasnee swung to a H1 2025 net profit of SAR 830 million, from a SAR 19.2 million loss a year earlier, though it posted a Q2 loss of SAR 65.8 million, according to Argaam’s data.