Influence of the Cooperation between PPG and Billions on the Global Titanium Dioxide Industry

HANGZHOU, China, Aug. 15, 2012 /PRNewswire-Asia/ -- Henan Billions Chemicals Co., Ltd. announced on June 25, 2012 that PPG Group would purchase at least 30,000 tons of titanium dioxide from it in the next five years, according to its agreement with PPG. At the same time, Billions will pay PPG Industries Limited $ 1.8 million by installments, in order to achieve the right to use chloride technology in China.

At present, a number of challenges and opportunities exist in the Chinese titanium dioxide market. However, it seems there are more opportunities than challenges as a whole. The development of the Chinese painting industry has brought great opportunities for the titanium dioxide industry. In the United States and Europe, the consumption of titanium dioxide per capita is 4.1 kg and 3.6 kg respectively while in China it is only 1.01 kg. The demand for titanium dioxide is trending up around the world, especially in China. Though China has already become the biggest producer and consumer of titanium dioxide, it still faces a number of dilemmas. As the production method with its sulfuric acid process has few alternatives, the homogenization phenomenon is very severe in the domestic market. The problems of rising prices in raw materials and lowered tax rebates will also greatly hinder the development of titanium dioxide technology.

According to the "China Titanium Dioxide Industry Analysis and Investment Profit Forecast Report in 2012-2016", the market scale of titanium dioxide is improving gradually in China. However, the production scale of the whole industry is still small, with a low industrial concentration.

For being one kind of an important raw material in the painting industry, titanium dioxide has played an important role in China and China has become the country with the most potential country in the world's titanium dioxide industry. The development of titanium dioxide is closely related to China's national economic development, and at the same time, the rapid development of the economy will bring lots of room for Chinese titanium dioxide industry.

China is now the second largest titanium dioxide manufacturing country, following the United States. Some leading enterprises have gradually achieved the comprehensive treatment and utilization on "three wastes", in accordance with their industrial features and regional economy requirements. To speak of some key technology progresses, those industries have adopted the advanced technology and equipment in the international world and taken many active measures to improve the productions. These measures include paying attention to the industrial chain extension and taking the road of a circular economy; keeping control of the production process and introducing a advanced management ideal; carrying out fine management and perfect production technology; and leading the production process in the road of energy conservation, cleaning production, environmental protection, safety and so on.

Some enterprises, such as Dongjia Group in Shandong, Sichuan Lomon Group, Henan Billions and PZH, have devoted themselves to the research of the sulfuric acid method, titanium dioxide cleaning production, energy saving, and emissions reduction as well as the integrated use of natural resources. These companies have helped create what is known as a sulfur-titanium co-production method and in doing so have provided a valuable reference for other companies in the industry. The sulfuric-titanium co-production method, which is a new advance on the sulfuric acid method as well as titanium dioxide cleaning production, has been evaluated by the National Environmental Protection Organization and approved by the National Environmental Protection Department. On top of that, Henan Billions recently introduced a new production technology called PPG chloride process.

All these measures have fully proved that the Chinese titanium dioxide industry has forged ahead on the road of sustainable development. The cooperation between PPG and Billions will help to break the global technological monopoly of titanium dioxide and provide great development space for Chinese titanium dioxide technology.

The involvement of Titanos Group has been crucial to the successful cooperation of the two companies. Earlier this year, Titanos Group's chairman Tao Yang led his team to visit PPG headquarters in the U.S. and discussed issues including domestic production development of titanium dioxide and more. Mr. Yang, since first getting involved in the titanium dioxide industry, has witnessed the development of the Chinese titanium dioxide industry and germinated the idea of "introduction of advanced technology from abroad" after the infringement case between PZH and Dupont occurred last year.

Titanos Group provided PPG with high-quality titanium dioxide as a part of its cooperation with PPG, a global manufacturer, as part of its cooperation with them. Through their collaboration, spearheaded in part by Tao Yang, chairman of Titanos, the two companies have helped the healthy development of the Chinese titanium dioxide industry. The cooperation has helped to transform the Chinese titanium dioxide industry from a traditional "real trader" type industry to one that is more based on technology and multi-channel services.

It can be seen that the development of the Chinese titanium dioxide industry will exert great influence on the global titanium dioxide industry market, and it will also bolster the global titanium dioxide industry on its march to rational sustainable development.

SOURCE Titanos Group