Outotec has agreed with The National Titanium Dioxide Company Ltd. (“Cristal”), the world’s second largest titanium dioxide pigment producer, on a four-year service contract. It complements the operation and maintenance services agreed in connection with the existing ilmenite smelter delivery contract announced in May 2012. The contract value over the four-year period is approximately EUR 20 million, of which approximately EUR 10 million has been booked in Outotec’s 2013 fourth quarter order intake.
The new service contract covers the supply chain management activities and supply of spare and wear parts for Cristal’s ilmenite smelter designed by Outotec and currently under construction in Jazan Economic City, Saudi Arabia. Outotec will optimize the spare and wear parts stock levels at the site and decrease logistics costs for Cristal through demand planning, logistics, and maintenance planning as part of Outotec’s operation and maintenance services. Outotec will establish a new distribution center for spare and wear parts in the United Arab Emirates during 2014 to serve Cristal’s ilmenite smelter and other customers in the Middle East.
“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 turn-key ilmenite smelter delivery will continue as long-term partnership providing benefits also after the smelter ramp-up. Further on, the new spare and wear parts distribution center will significantly strengthen our service capabilities in the Middle East”, says Robin Lindahl, President of Metals, Energy & Water business area.