New TiO2 supply to help balance consolidation − PPG’S Bunch

Interview article by Al Greenwood

MIAMI, Florida (ICIS)–Consolidation in the titanium dioxide (TiO2) market should be offset by increasing capacity from Asia and Mexico, leading to stable prices, the CEO of US-based PPG Industries said on Thursday.

The expectations of PPG CEO Charles Bunch were echoed by Charles Shaver, the CEO of Axalta Coating Systems.

On the one hand, the make-up of the TiO2 industry is changing.

DuPont is spinning off its performance chemicals business, which it named Chemours. This includes the company’s TiO2 products as well as fluoropolymer resins.

Also Huntsman has completed its $1.275bn acquisition of Rockwood’s performance additives and TiO2 businesses.

Once the deal closes, the combined Huntsman and Rockwood pigments businesses would be subject to a public offering within two years.

The business will enter the market as the second largest producer of TiO2.

Separately, Huntsman is considering reducing production capacity for titanium dioxide (TiO2).

That capacity reduction will be countered by new plants.

Bunch mentioned new capacity in Asia.

In addition, DuPont plans to start production at its new plant in Altamira, Mexico, in 2016.

The plant’s capacity is 200,000 tonnes/year.

The Coatings Summit is hosted by the International Paint and Printing Ink Council (IPPIC). It runs through Friday.