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The result of operations of the National Industrialization Co.’s (Tasnee) in 2017 was reasonable, and is set to improve even further, as the company’s internal restructuring program unfolds, Chief Executive Mutlaq Al-Morished told Argaam.
The company’s performance in 2017 was bolstered by a 30 percent increase in titanium dioxide (TiO2) prices, Al-Morished said on the sidelines of the company’s earnings event held in Riyadh.
“We believe TiO2 prices will not increase significantly going forward, especially after the surge in late 2016 and during 2017. Prices may increase, but not that much,” he added.
While the prices of polyethylene and polypropylene increased in 2017, lower propylene feedstock prices had a partial impact on the company’s bottom line, and acrylic acid division saw a slight loss.
The unscheduled shutdowns of some plants in 2017 was normal and did not impact on production, he added.
“Maintenance is usually scheduled for the polyethylene and polypropylene plants every two years. While polypropylene plant’s maintenance is due every 18 months. The ethylene plant undergoes maintenance every five to seven years,” he said.
Commenting on the merger deal of subsidiary Cristal and US-based Tronox Limited, Al Morished said the parties are determined to pursue the acquisition, and expected to reach resolution with the US Federal Trade Commission (FTC) by the end of Q2 or early Q3 2018.
The regulatory requirements of the FTC and EU’s regulator are applied on all mergers, nevertheless, our merger is taking longer than expected, he said.
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