Tasnee ups Cristal stake to boost production, says CEO

Saudi Arabia’s National Industrialization Co (Tasnee) acquired an additional 13 percent shareholding in Cristal in order to meet market challenges and bolster its production capabilities, said Salah Al-Nozha, chief executive of the company.

The company is looking to boost its production of titanium dioxide, as well as its petrochemical projects, Al-Nozha said in an interview with Al Arabiya news channel.

The oil market's instability poses a challenges for the petrochemicals industry, Al-Nozha said. He stressed that it’s vital to take precautions in the current market conditions.

“The company is working on enhancing its competitiveness and profitability, as well as reducing production costs, and increasing its subsidiaries and production capacity,” he said.

He added that the drop in oil prices had a positive impact by cutting costs of naphtha production, although this will result in a price drop when selling the final product.

Last Thursday, Tasnee signed a deal to acquire another 13 percent share worth SAR 1.8 billion in its subsidiary Cristal, upping its stake from 66 to 79 percent in the company.