completion of repair works in the Melt shop of Al Tanmia Company for Steel in Iraq

Reference to Astra Industries announcement dated March 17th, 2014 regarding the occurrence of fire in the Melt shop of Al Anmaa factory (owned 51% by Astra Industries), the Group would like to announce that Al Anmaa factory has successfully completed the repair works in the Electric Arc furnace and it commenced gradual production on Wednesday April 23rd, 2014 evening.

The company managed to complete the repair work through utilizing the spare parts which it had in stock, the Insurance Company will compensate for the cost of repair and spare parts in light of the Insurance coverage. The estimated cost of repair works and replacement of defective parts is around SAR 9 million.
With regards to the financial impact of this incident, the company does not expect to be significant since the company had sufficient stock of inventory of Billets that was sufficient to operate the Rolling mill during the repair works of Meltshop.