Mining maintenance services provider Outotec has signed a four-year €20-million contract with the world’s second-largest titanium dioxide pigment producer, the Saudi Arabia-based National Titanium Dioxide Company, also known as Cristal Global, for the provision of operational and maintenance services.
The contract complements the companies’ existing operations and maintenance service agreement, signed in 2012.
Half of the latest contract’s monetary value was paid out to Outotec in the fourth quarter of 2013.
Outotec notes that the new service contract covers Cristal Global’s supply chain management activities and the supply of spare parts for Cristal’s ilmenite smelter, which was designed by Outotec and is currently under construction in Jazan Economic City, Saudi Arabia.
Outotec plans to optimise the spare parts stock levels at the site and decrease logistics costs for Cristal through logistics, demand planning and maintenance planning as part of its operation and maintenance services.
Further the company will this year establish a new distribution centre for spare parts in the United Arab Emirates to service Cristal’s ilmenite smelter and other customers in the Middle East.
Outotec metals, energy and water business area president Robin Lindahl says Outotec plans to take advantage of the opportunities that this contract will offer in terms of its growth 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 turnkey ilmenite smelter delivery will continue in the long term,” says Lindahl, adding that Outotec will still offer its services after the smelter ramp-up.
“The new spare parts distribution centre will also significantly strengthen our service capabilities in the Middle East,” he concludes.