Titanium Technologies Segment
The Chemours Titanium Technologies segment is the leading global manufacturer
of titanium dioxide, or TiO2. TiO2 is a pigment used to deliver whiteness, opacity,
brightness and protection from sunlight in applications such as architectural
and industrial coatings, flexible and rigid plastic packaging, PVC window profiles,
laminate papers, coated paper and coated paperboard used for packaging. We sell
our TiO2 products under the Ti-Pure™ brand name to over 800 customers
globally. We operate four TiO2 production facilities: two in the United States
(U.S.), one in Mexico and one in Taiwan. In addition, we have a large-scale
repackaging and distribution facility in Belgium and operate a mineral sands
mining operation in Starke, Florida. In total, we have a TiO2 capacity of 1.25
million metric tons per year. In 2016, we expanded our TiO2 production facility
in Altamira, Mexico. We plan to steadily ramp up production at Altamira, with
full capacity of the new line reaching approximately 200,000 metric tons annually
being achieved over the next few years.
Chemours is one of a limited number of producers operating a chloride process
for the production of TiO2. We believe that our proprietary chloride technology
enables us to operate plants at a much higher capacity than other chloride technology-based
TiO2 producers, uniquely utilizing a broad spectrum of titanium-bearing ore
feedstocks and achieving the highest unit margins in our industry. This technology,
which is in use at all of our production facilities, provides us with one of
the industry’s lowest manufacturing cost positions. Our research and development
efforts focus on improving production processes and developing TiO2 grades that
help our customers achieve optimal cost and product performance.
TiO2 demand is highly correlated to growth in the global residential housing,
commercial construction and packaging markets. Industry demand for TiO2 is generally
expected to be in line with global GDP growth, and can be cyclical due to economic
and industry-specific market dynamics. We believe that the TiO2 demand grew
above GDP growth rates in 2016 due to a pent-up demand created by destocking
in 2015. We believe the market growth seen in 2016 was a combination of market
growth and the return to more typical customer inventory levels. We expect TiO2
demand growth to return to approximate GDP growth rates in the long-term. Chemours’
future demand growth may be below average global GDP growth rates if our sales
into developed markets outpaces our sales into emerging markets.
Fluoroproducts Segment
Our Fluoroproducts segment is a global leader in providing fluorine-based, advanced
material solutions. The segment creates products that have unique properties
such as high temperature resistance, high chemical resistance and unique di-electric
properties for applications across a broad array of industries and applications.
We are a global leader in providing fluoroproducts, such as refrigerants and
industrial fluoropolymer resins and derivatives.
Chemical Solutions Segment
Our Chemical Solutions segment comprises a portfolio of industrial chemical
businesses primarily operating in the Americas. The Chemical Solutions segment’s
products are used as important raw materials and catalysts for a diverse group
of industries including, among others, gold production, oil and gas, water treatment,
electronics and automotive. We are a leading provider of sodium cyanide in the
Americas through our Mining Solutions business. Chemical Solutions generates
value through the use of market leading manufacturing technology, safety performance,
product stewardship, and differentiated logistics capabilities.
As part of our transformation plan announced in 2015, we conducted a strategic
review of our Chemical Solutions segment.