Argex announces purchase agreement with PPG
MONTREAL, June 27, 2013 /PRNewswire/ - Argex Titanium Inc. (TSXV: RGX) announced today that it has entered into a long-term supply agreement with PPG Industries Inc. (NYSE: PPG) relating to titanium dioxide (TiO2) pigment suitable for various end-use applications by PPG.
PPG is the world's leading coatings and specialty products company, serving customers in construction, consumer products, industrial and transportation markets and aftermarkets. PPG operates in nearly 70 countries around the world, with sales in 2012 of US$15.2 billion.
The supply agreement and a concurrently executed research services agreement between PPG and Argex, whereby PPG will provide continued research and development support to both optimize Argex pigment grade TiO2 for paints and coatings and combine PPG's coatings technology and expertise with Argex's TiO2 proprietary processing technology, replace the collaboration agreement signed by the two parties that was announced in April, 2012.
Roy Bonnell, Argex President and Chief Executive Officer, said, "The agreements with PPG are a significant milestone for our Company. Our relationship with PPG has greatly assisted with our stated goal to move towards production. We are very pleased that PPG will be our first customer for TiO2 pigment suitable for use in its architectural paint production. We are also pleased that we will continue our collaboration with PPG to optimize our product for other various end-use applications."
"These agreements and our ongoing collaboration with Argex are demonstrative of PPG's stated intent to leverage our expertise to secure an enhanced supply of critical raw materials," said Charles F. Kahle II, PPG Chief Technology Officer and Vice President, Research and Development, Coatings.
PPG previously manufactured titanium dioxide using the chloride process at its former Natrium, W.Va., chemicals plant and sold titanium dioxide pigment for coatings and other end-use applications. Titanium dioxide is a raw material widely used in the paint and coatings industry as pigment for its hiding, durability and whiteness characteristics.
About Argex Titanium Inc.
ARGEX Titanium Inc. is a near-term producer of Titanium Dioxide (TiO2). With a primary goal of advancing rapidly towards production, Argex has adopted a simple and low-risk strategy for the scale-up of its proprietary process that allows it to produce high quality TiO2 pigment directly from run-of-mine material from a variety of sources. The closed-loop process is environmentally friendly and produces minimal inert tailings.
The feasibility study for the process is nearing completion.
The Argex R&D Centre and its first industrial sized production module will be situated in Salaberry-de-Valleyfield, Quebec. The company expects its industrial plant to be operational in early 2015. The location of the site can be viewed at Argex Valleyfield.
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SOURCE Argex Titanium Inc.