AkzoNobel has entered into a partnership in China with Guangxi CAVA Titanium Industry Co. Ltd. for the production and supply of titanium dioxide (TiO2), one of the most important raw materials in the production of paints and coatings.
The collaboration, which includes the construction of a new TiO2 plant in Qinzhou, will help to secure AkzoNobel’s growing titanium dioxide raw material needs for the Asian market. Rapid growth is expected within the global coatings and paints market and most of this demand growth will occur in Asia, especially China. As a result, the regional demand for TiO2 will also rise.
“By entering into this partnership with CAVA, we will enhance security of supply in Asia for a critical raw material,” Werner Fuhrmann, AkzoNobel’s Executive Committee member responsible for Supply Chain and Sourcing, explained.
Guangxi CAVA Titanium Industry Co. Ltd. was recently established to produce titanium dioxide and is currently in the process of designing and constructing a 100,000 ton TiO2 plant at an industrial site in Qinzhou. Production is expected to start in early 2014.
“This is a strategic partnership which offers huge potential to further integrate and expand our business portfolio,” said Ke Genxi, Chairman of CAVA Group. “I’m very pleased to partner with AkzoNobel, and I’m sure that our 20 years of experience in ore operations—along with our own resources in this venture—will contribute to a successful collaboration.”
Titanium dioxide is by far the most widely used white pigment in the industry because of its brightness and opacity. Approximately 5 million tons of pigmentary TiO2 are consumed annually worldwide, mainly in the coatings, plastics and paper industries.
AkzoNobel is the largest global paints and coatings company and currently employs around 6700 people in China, where revenue for 2010 totaled €1.3 billion. The majority of revenue is generated from local demand. The company has 27 manufacturing locations in China.