Titanium dioxide (TiO2) producer Cristal has signed a deal to buy Jiangxi Tikon Titanium’s TiO2 assets in China. The acquisition forms part of Cristal’s plan to expand its worldwide presence in the TiO2 market.
Cristal corporate development director general Mark Stoll said: “Cristal firmly believes this transaction will further enhance our ability to increase our product offering to our global customer base and show our commitment to supplying the best products and services available in the industry.”
As part of the deal, the company will purchase Jiangxi Tikon’s production facility in Jiangxi province, China.
The transaction will comprise a combination of asset and equity, and is expected to be concluded by the end of the first quarter of 2015.
In the coming years, China is forecasted to account for a significant demand for TiO2, and the latest acquisition facilitates Cristal’s strategy to become the most globally-placed titanium producer, the company said.
Cristal is 66%-owned by Saudi Arabia-based National Industrialization (Tasnee), and produces ultrafine titanium dioxide products, titanium chemicals, mineral sands and titanium metal powder.
The company has a workforce of approximately 4,500 across its operations in six countries worldwide.
The latest news comes after Tasnee submitted a $480m bid in September to buy an additional 13% stake in Cristal.
Tasnee is engaged in petrochemical, chemical, and industrial projects, and produces petrochemical products, including polypropylene, polyethylene and acrylic acid.
Source: Chemicals Technology
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