Outotec wins $27m Saudi service deal
Company agrees four-year deal to service Cristal smelter in Jazan city
Finnish engineering company Outotect has announced it has won a $27m (EUR20m) service contract from Saudi Arabia's National Titanium Dioxide Company, Cristal.
The four-year contract complements an existing deal signed in May 2012 to provide operation and maintenance services to Cristal's ilmenite smelter. It said around half ($13.5m) of the revenues would be booked against its Q4 2013 revenues.
Cristal is the second-biggest titanium dioxide pigment producer in the world and the service deal covers supply chain management and the supply of spare parts for the smelter.
Although it is based in Jazan Economic City, Outotec said that it is planning to set up a distribution centre housing spare parts in the UAE to serve both this smelter and other customers in the region.
Robin Lindahl, president of the firm's metals, energy and water business, said: "This new service concept demonstrates our capabilities to provide additional value for our customers through life cycle solutions.
"For Cristal this means that the cooperation established during the turnkey ilmenite smelter delivery will continue as a long-term partnership providing benefits also after the smelter ramp-up.
He added: "Further on, the new spare and wear parts distribution centre will significantly strengthen our service capabilities in the Middle East."