OUTOTEC OYJ STOCK EXCHANGE RELEASE MAY 31, 2012 at 09.00 AM
Outotec awarded Cristal Global's mega size ilmenite smelter project in the Kingdom of Saudi Arabia
Outotec has agreed with Cristal Global, the second largest titanium dioxide pigment producer in the world, on the design and delivery of technology and services for new ilmenite smelting facilities to be located in Jazan Economic City, Saudi Arabia, as well as installation and construction of the plant on a pure turnkey basis. The overall contract value exceeds EUR 350 million, which will be booked in Outotec's second quarter order intake with the revenues recognized gradually over three years. The order supports Outotec's long term growth and profitability targets and does not affect the company's financial guidance for 2012.
Ilmenite is an iron titanium oxide and the primary ore of titanium. It is also used in the manufacture of titanium dioxide, a bright white powder used as a base pigment in paint, paper and plastics. Cristal Global has ilmenite mines in Australia and pigment plants in the USA, Europe and Saudi Arabia. In this new mega size ilmenite smelter, Outotec's ferroalloy smelting technology is applied for processing the ilmenite to titanium dioxide slag. The plant's initial annual capacity will be 500,000 tonnes of titanium dioxide slag, and its design enables expansion to one million tonnes. In addition, the plant will produce 235,000 tonnes of high purity pig iron as valuable co-product.
Outotec's scope of delivery includes basic and detail engineering, process technology, supply of all equipment, site preparation and civil works, equipment installation, construction and commissioning of the ilmenite smelting plant on a pure turnkey basis. The new plant is scheduled to be operational in 2014, after which Outotec will provide operate and maintenance services for the first two years with an option to continue.
"The demand of titanium dioxide is growing rapidly in Asia along with the growing middle class. Outotec's ferroalloy smelting is the Best Available Technology, BAT as defined by European Union, and I am excited about the opportunities of this technology in sustainable pigment production. I am also very happy about the implementation concept of this large project. Our global resources will be used effectively for the customer: engineering and project management will be done in Finland, manufacturing globally and civil and construction in Saudi Arabia by Outotec's international site team", says Outotec CEO Pertti Korhonen.
For further information please contact:
Pekka Erkkilä, President - Ferrous Solutions business area
Tel. +358 20 529 2143, +49 6171 9693 100
Eila Paatela, Director - Corporate Communications
Tel. +358 20 529 2004, mobile +358 400 817198
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