PPG (NYSE:PPG) and Lomon Billions today announced an expanded, multi-year titanium-dioxide (TiO2) supply agreement. Under the agreement, Lomon Billions will supply additional quantities of chloride- and sulfate-based TiO2 to PPG from Lomon Billions’ existing manufacturing capacity. In addition, PPG has committed to purchasing additional supplies of chloride-based TiO2 from new manufacturing capacity that is currently being constructed by Lomon Billions and is expected to be on line in 2019. Lomon Billions is one of the world’s leading TiO2 suppliers. Commercial terms of the agreement were not disclosed.
“Over the past six years, Lomon Billions has been an excellent partner as the company has become the fourth largest global supplier of TiO2,” said Tim Knavish, PPG senior vice president, who oversees PPG’s global supply management function. “This multi-year expansion of our supply agreement is a reflection of our continued confidence in the growing capability of Lomon Billions and their commitment to make ongoing investments in additional TiO2 manufacturing capacity. We look forward to continuing our work with Lomon Billions.”
“As Lomon Billions continues its growth through investing in innovative manufacturing of chloride- and sulfate-based TiO2, PPG has been one of our most important partners,” said Ruiqing Tan, Vice Chairman of Lomon Billions, who oversees the company’s supply and sales functions. “This multi-year expansion agreement will create additional value for both companies. We look forward to continuing our partnership with PPG.”
TiO2 is an important raw material widely used by PPG and other paint and coatings manufacturers as a pigment to provide hiding, durability and whiteness characteristics.
About Lomon Billions
Lomon Billions is an established and dynamic titanium dioxide (TiO2) pigment manufacturing business with a strong and expanding global presence. The company manufactures high-performance TiO2 pigment using both the chloride and sulfate process. Its prominent LOMON® and BILLIONS® pigment brands are recognized worldwide. It currently has a total annual production capacity of over 700,000 tons and is ranked 4th in the world and 1st in Asia in terms of TiO2 pigment production capacity.
Lomon Billions has been manufacturing TiO2 pigment for almost 30 years. The company has four established ISO certified TiO2 pigment production sites in three locations in China: Jiaozuo, Henan Province, Deyang, Sichuan Province and Xiangyang, Hubei Province. Lomon Billions also owns an ilmenite mine in Panzhihua, Sichuan Province, a key raw material for TiO2 production.
Lomon Billions’ global headquarters and 12,000m2 technology center is in Jiaozuo, Henan Province, China. Its European headquarters is in Stockton-on-Tees, UK, and its headquarters in the USA is in Chicago, Illinois. The company was formed by a merger between Henan Billions Chemical Co., Ltd. and Sichuan Lomon Titanium Industry Co., Ltd. on October 28th, 2016. This $1.47 billion merger broke the record for capital refinancing in Henan Province and created a company listed on the Shenzhen Stock Exchange with a market value of over 30 billion RMB ($4.3 billion).
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At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and materials that our customers have trusted for 135 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $14.7 billion in 2017. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.
Statements in this news release relating to matters that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 reflecting the company’s current view with respect to future events or objectives and financial or operational performance or results. The forward-looking statements contained herein include statements relating to future TiO2 production by Lomon Billions and the future relationship between PPG Industries and Lomon Billions. Actual events may differ materially from current expectations and are subject to a number of risks and uncertainties, including project start-up risks, future changes in supply, future collaboration arrangements between PPG and Lomon Billions and the other risks and uncertainties discussed in PPG’s periodic reports on Form 10-K and Form 10-Q, and its current reports on Form 8-K filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of their initial issuance, and PPG does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by applicable law.
Copyright Business Wire 2018