Astra Industrial Group announces that it received a letter on June 19th , 2014 afternoon from Al Tanmia Company for steel that due to the latest developments in Iraq and the decline in demand and sales, the management of Al Tanmia company has decided to scale down production volumes.
The management is closely monitoring the developments in Iraq and will scale up production volumes once relative stability is foreseen.
Estimating the financial impact is not attainable at this stage due to the amount of variables involved. It is worth mentioning that the fixed element of the operating cost is around SAR 16 million per month, out of which depreciation constitutes around SAR 5 million.
Subsequent disclosures will be issued upon major developments.
Astra Industrial Group owns 51% of Al Tanmia Company for Steel.