Cristal Global Declares Force Majeure at its Bunbury, Australia Operations

Wed Jun 11, 2008 1:31pm EDT

* Reuters is not responsible for the content in this press release.

JEDDAH, Saudi Arabia & HUNT VALLEY, Md.--(Business Wire)--
Cristal Global announced today that it has declared "Force
Majeure" at its Bunbury titanium dioxide (TiO2) operations in Western
Australia. Cristal Global made this declaration as a result of similar
declarations made by its key energy and raw material suppliers who
were also significantly impacted by the June 3, 2008 explosion and
fire at Apache Energy's Varanus Island natural gas pipeline facility.

   On June 3, 2008, Cristal Global safely shutdown its Bunbury
titanium dioxide (TiO2) operations in Western Australia as a result of
the Force Majeure declaration it received from its natural gas
distributor. While we have recently been given a small allocation of
natural gas by our supplier, this supply is not enough to run our
entire operations nor is this supply available to us on a consistent

   The natural gas situation and its impact on local Western
Australia industry is still quite fluid. Cristal Global is uncertain
at this time how long it will be before full production at its site is
resumed. Cristal Global has started developing energy and raw material
sourcing alternatives.

   Cristal Global is supplying some customer requirements from
available inventory and is evaluating options to supply customers from
other company production sources.

   Cristal Global continues to monitor this situation very closely
and will provide updates as new information becomes available.

   Cristal Global is the world's second-largest producer of titanium
dioxide and a leading producer of titanium chemicals. Cristal Global
operates eight manufacturing plants in six countries on five
continents and employs more than 3,500 people worldwide.

Cristal Global
Amy N. Drusano
Manager - Corporate Communications

Copyright Business Wire 2008