Millennium concludes Brazil TiO2 buy

01 July 1998 21:46  [Source: ICIS news]

HOUSTON (CNI)--Millennium Chemicals said Wednesday it has completed the purchase of a majority share of two titanium dioxide (TiO2) operations in Brazil in a move that gives the company its first presence in South America.

The operations consist of a 60 000 tonne/year TiO2 plant and a mineral sands mine with more than 2m tonne of recoverable reserves. The mine produces more than 100 000 tonne/year of titanium ores and more than 16 000 tonne/year of zircon.

Millennium is buying Constructora Andrade Guttierrez's and Bayer's equity interests in Titanio do Brazil (Tibras), which represents 72% of the outstanding capital of Tibras and 99% of its voting shares.

The Red Bank, New Jersey company declined to reveal its purchase price, but company spokesman Mickey Foster told CNI that the Brazil operations have combined annual sales of $130m. And Tibras has invested more than $125m in the business for five years.

"The addition of Tibras' 60 000 tonne/year of production, at a time when TiO2 pricing and profitability are turning more positive daily, demonstrates our aggressive approach toward increasing earnings and EVA," noted Millennium chairman and chief executive William Landuyt.

Millennium said it is beginning the integration process towards the "rapid assimilation" of the Brazilian operation into its global structure.

"Both the TiO2 plant and the ore mine have significant opportunities for cost reduction, debottlenecking and expansion, which Millennium intends to take advantage of where feasible and as the marketplace demands," said Robert Lee, president and chief executive officer of Millennium Inorganic Chemicals.

By: Mary Ann Tawasha
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