The new company will consist of an equity shareholding of 32.5% for Cristal, 32.5% for Tasnee and 35% for Toho.
The JV will invest a total of US$420 million through the Saudi Industrial Development Fund (SIDF) and local funding to build the 15,600 metric ton per year facility in Yanbu Industrial City, Saudi Arabia. It is expected that the new facility will start to ramp up commercial production in Q2 2017 with completion in Q1 2018.
The titanium sponge facility will be built adjacent to Cristal’s existing titanium dioxide plant in Yanbu Industrial City. The plant will supply the new production plant with titanium tetrachloride.
“This joint venture marks an important step in progressing our strategic vision for an integrated titanium value chain,” said Dr Talal Al-Shair, vice chairman of Tasnee and chairman and CEO of Cristal. “By partnering with Toho and building on their outstanding advanced production technology we are together going to build a facility that will produce high quality titanium sponge at a very competitive cost. This is truly a breakthrough opportunity and will allow us, together with our partners, to produce top quality titanium products.”