OUTOTEC OYJ STOCK EXCHANGE RELEASE OCTOBER 26, 2018 at 9:00 AM
Outotec warns about possible material additional costs related to a large project
Outotec has delivered a first-of-its-kind ilmenite smelter, with two large alternating current (AC) electric furnaces, as part of a greenfield plant delivery signed in 2012. Both furnaces had their challenges during the original start-ups in 2015 and 2016. Furnace 1 was repaired and rebuilt, but during the ongoing start-up of the repaired furnace, there were problems and the start-up operation was terminated. Investigation of the furnace will be made when the furnace has cooled down, which takes approximately one month.
Currently it is estimated that potentially rebuilding a new furnace will take approximately one year. At this point, the cause of the problem with the start-up is not clear. In addition, it is too early to assess the total financial impact of any repairs that may be required. If it transpires that responsibility for this incident rests with Outotec, then the cost for Outotec will be material. In that case, it would have a material impact to Outotec's 2018 adjusted EBIT.
Outotec announces additional information when available.
Outotec will announce its Q3/2018 interim report on October 31, 2018.
For further information, please contact:
Nina Kiviranta, General Counsel
Tel. +358 20 529 211