Saudi Arabia's AMIC delays plant start-up as cost rises by $60m
The Yanbu titanium sponge plant's start-up is also deferred to H1 2019 due to raw material availability
Saudi Arabia’s Advanced Metal Industries Company (AMIC) has postponed the commercial start-up of its Titanium Sponge project until the first half of 2019, a regulatory filing has revealed.
AMIC, which is 50:50 owned by Tasnee and Cristal, said the move was driven by the delay in producing the raw material, titanium tetrachloride, which it now expects to complete by the first quarter of 2019.
Additionally, the cost of the project, located in Saudi’s Yanbu Industrial City, is expected to increase by $60m (SAR225m) from the initial project cost of $440m (SAR1.65bn) announced previously, the filing to Saudi bourse Tadawul revealed.
The financial impact of the cannot be determined presently, with further updates set to be revealed at a later stage.
This is not the first time a Tasnee-developed project has encountered delays. At the end of October 2018, the company announced, through a similar filing to the Saudi bourse, that the start-up of its titanium smelter plant in the economic city of Jazan was stalled because of an unspecified technical issue.
In June 2017, the firm stated that work on the plant was “still ongoing to solve the technical problems, which require special parts being manufactured for the project due to its large size and using the newest technology in the field”.