Cristal & Tasnee Announce Joint Venture With Toho

  Cristal & Tasnee Announce Joint Venture With Toho

Business Wire

JEDDAH, Saudi Arabia -- January 22, 2014

The National Industrialization Company (“Tasnee”) and The National Titanium
Dioxide Company Ltd. (“Cristal”) announced today that they signed an agreement
to establish a joint venture company with Toho Titanium Company Ltd. (“Toho”).
Through SIDF/local funding the new company will invest a total of US $420M,
including startup expenses, to construct a 15,600 metric ton per year titanium
sponge production facility in Yanbu Industrial City, KSA.

The new facility will be built adjacent to Cristal’s existing titanium dioxide
plant in Yanbu Industrial City. Cristal’s Titanium Dioxide plant will supply
the new production plant with titanium tetrachloride. The strategic objective
of the new joint venture company is to produce high quality titanium sponge at
a competitive cost by benefiting from the economies of scale and integrated
synergies resulting from Cristal’s existing Yanbu operations and Toho’s
advanced production technology.

Dr. Talal Al-Shair, Vice Chairman of Tasnee and the Chairman and CEO of
Cristal, said: “This joint venture marks an important step in progressing our
strategic vision for an integrated titanium value chain. 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

The new company, which will consist of an equity shareholding of 32.5% for
Cristal, 32.5% for Tasnee and 35% for Toho, is also expected to create more
than 160 highly skilled direct jobs in Yanbu. This builds on the over 300 new
skilled direct jobs that Cristal has recently created in the Kingdom as part
of its slagger project in Jazan Economic City. It is expected that the new
facility will start to ramp up commercial production in Q2 2017 with
completion in Q1 2018.

Notes to the editor:

Cristal is the world’s second-largest producer of titanium dioxide and a
leading producer of titanium chemicals. Cristal is the world’s leading
supplier of ultrafine titanium dioxide products and titanium chemicals and is
a fast-growing producer of mineral sands and titanium metal powder. Cristal
operates seven manufacturing plants in six countries on five continents and
employs nearly 4,500 people worldwide.

Cristal is owned 66% by Tasnee, a listed Saudi joint stock company and 33% by
Gulf Investment Corporation, a company equally owned by the six states of the
Gulf Cooperation Council and headquartered in Kuwait.

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Fahad Nackshabandi, Director – Corporate Communications
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