for anyone that needed the implications of this news spelled out to them...


"The acquisition by Cristal of Jiangxi Tikon (a quality TiO2 Rutile producer with a production capacity of 80,000 MT) signals a change in the strategy of the top 5 TiO2 producers. It is the first acquisition of a Chinese TiO2 producer by a non-Chinese TiO2 producer and might lead to more acquisitions of Chinese TiO2 producers. This news is positive for many reasons:

> confirmation of China's importance as a leading TiO2 producer, consumer and exporter. After all, China is today - by far - the #1 TiO2 producer and exporter in the world.
> further consolidation of China's TiO2 industry in great need of drastically reducing the far too high number of TiO2 producers (45); the majority of which being too small to continue operating independently.
> the realization by Cristal - the current #3 TiO2 producer after Dupont and Huntsman - that a TiO2 production entity located in China has become a necessity in terms of market presence/location and as a lower costing center.

Consequently, I would not at all be surprised if the other 4 top TiO2 producers announce in the near future similar plans in China. It might also convince major TiO2 end-users (as PPG did with Henan) to form close alliances with some of top Chinese producers in order to better secure their TiO2 needs as TiO2 is here to stay! Stay tuned." (Jack Blumenfrucht, Linkedin)

https://www.linkedin.com/groups/CRISTAL-ACQUIRING-JIANGXI-TIKON-2488708.S.5933543263112826883?trk=groups_items_see_more-0-b-ttl