Wednesday, August 8, 2012

Henan Billions Gains License of TiO2 Chloride Process Technology from PPG

Recently, Henan Billions Chemicals Co., Ltd. (Henan Billions) signed a memorandum of understanding with PPG Industries (PPG). Under the terms of this agreement, PPG will license Henan Billions to use TiO2 chloride process technology in its TiO2 production and Henan Billions will provide TiO2 to PPG as an exchange. With this license of TiO2 chloride process technology, Henan Billions will gain superiority in TiO2 market in China. In addition, PPG can reduce its TiO2 cost in its coating production, according to CCM’s July issue of TiO2 China Monthly Report.

According to the agreement, PPG will transfer the TiO2 chloride process technology to Henan Billions. In the meantime, Henan Billions will pay USD1.8 million of the deal to PPG; thereinto, USD0.68 million will be paid as the first term payment. For the remaining USD1.12 million, Henan Billions will pay it by selling TiO2 at a favorable price (USD2,562/t before tax) to PPG. In addition, Henan Billions will sell at least 30,000 tonnes TiO2 to PPG in the following five years.

After this agreement, Henan Billions will build a new chloride process TiO2 plant with the capacity of 60,000t/a. According to schedule, the construction of the plant will be finished at the end of 2013. It can be observed that, Henan Billions will provide both chloride process TiO2 and sulfate process TiO2 in the future.

Henan Billions gains chloride process TiO2 technology from PPG mainly because PPG wants to reduce the cost of TiO2, the material in its coating production.

PPG, as the world's second largest coating producer (the sales value is USD14.9 billion in 2011), consumes a large amount of TiO2 every year. Meanwhile, high quality coating need to use high quality TiO2, especially the TiO2 made by chloride process. However, most Chinese TiO2 producers only can provide TiO2 made by sulfate process—it is lower in quality compared with that made by chloride process.

Under the circumstances, the price of TiO2 made by chloride process is mainly controlled by worldwide TiO2 producers like DuPont. PPG is going to help China's TiO2 producer Henan Billions to produce chloride process TiO2 and then make the TiO2 market in China more competitive so as to reduce the high price of chloride process TiO2. At the same time, PPG can gain USD1.8 million, the real economic benefit, after it licenses Henan Billions to use TiO2 chloride process technology. And PPG has learned that the TiO2 sulfate process technology in China is growing more and more mature and the trend of using chloride process technology is imperative. The development of TiO2 chloride process technology in China is only a matter of time. Therefore, it is a proper time for PPG to transfer TiO2 chloride process technology to TiO2 producers in China now.

It is certainly an opportunity for Henan Billions to gain TiO2 chloride process technology. Henan Billions, one of the top three TiO2 producers in China, will promote its position and get more competitive in TiO2 market in China with this advanced technology.

At present, Henan Billions only provides rutile TiO2 produced by sulfate process in China, and no anatase TiO2 is produced. Besides, the technology of chloride process can only produce rutile TiO2. In this case, Henan Billions' TiO2 product structure will not change after adopting chloride process technology.

The most important thing is that the chloride process TiO2 has high quality with its better size distribution, stability, dispersibility and so on compared with that of sulfate process TiO2. Simultaneously, the chloride process technology will produce less pollution to the environment in comparison with the sulfate process technology.

With chloride process TiO2, Henan Billions will gain a good position in chloride process TiO2 market in China because the total capacity of chloride process TiO2 in China can't meet domestic demand for chloride process TiO2. Obviously, Henan Billions' efforts in chloride process TiO2 is promoting the development of chloride process TiO2 technology in China.

Source: TiO2 China Monthly Report 1207

Content of TiO2 China Monthly Report 1207:
China's TiO2 export and import situation in May 2012
Henan Billions gains license of TiO2 chloride process technology from PPG
Yunnan Xinli debugs chloride process TiO2 devices
Shandong Dongjia's new cleaner production process certificated by CESS
ISK announces medium-term plan of TiO2 to gain more competitiveness
Titanium feedstock import situation meets downtrend in China in May 2012
Lubei Group plans to build titanium concentrate ore plant in Sri Lanka
Iluka's titanium feedstock sales revenue grows in H1 2012
Coating industry to increase continuously in China in 2012
China's TiO2 export volume to Brazil grows in 2012
… …

TiO2 China Monthly Report, a monthly publication issued by CCM International on 25th of every month, will penetrate into Chinese TiO2 market from a global view, deeply analyse TiO2 industrial chain and manufacturers’ competitiveness and trace the latest industrial hotspots and dynamics, aiming to provide the most valuable information about China’s TiO2 industry.

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