After accepting its new trusteeship, CNNC Huayuan Titanium Dioxide Co., Ltd. (CNNC Huayuan) sees things go better, according to CCM’s September issue of TiO2 China Monthly Report.
The new trustee, Anhui Goldstar Titanium Dioxide Co., Ltd. (Anhui Goldstar) stationed in CNNC Huayuan and studied the two production lines (100# and 200#) from 15 August 2011. On 20 August, Anhui Goldstar decided to suspend the 200# production line for maintenance and transformation, with a purpose to improve productivity and product quality. And the production might resume by the end of this September.
The suspension of 200# production line is estimated to reduce TiO2 output by about 3,300 tonnes, which will be mitigated by productivity improvement and product quality enhancement upon completion of the production line's maintenance and transformation.
Previously, CNNC Huayuan was not able to transform production lines because of fund limit.
On 21 August 2011, CNNC Huayuan signed a USD2.8 million (RMB18 million) sales contract with Wuxi Haopu Titanium Co., Ltd. (Wuxi Haopu), a subsidiary of Anhui Goldstar. According to the contract, CNNC Huayuan will sell 1,000 tonnes of TiO2 to Wuxi Haopu.
CNNC Huayuan has benefited from higher TiO2 selling prices and sales volume in the first half of 2011, when its revenue reached USD33.7 million, up 53% year on year; however, its profit was a loss of USD2.3 million, compared with a loss of USD7.0 million in H1 2010. Nevertheless, the company estimates a loss for the first three quarters this year to be in the range of USD4.7 million to USD5.5 million.
(Guangzhou China, September 26, 2011)
Source: TiO2 China Monthly Report1109
http://www.cnchemicals.com/Newsletter/NewsletterDetail_7.html
Content of TiO2 China Monthly Report 1109:
China keeps up TiO2 international trade surplus
Henan Billions profits from higher TiO2 price
CNNC makes progress under new trusteeship
PGVT sees increase in gross profit margin of titanium business
China makes progress in TiO2 production equipment
China's titanium feedstock import volume drops sharply in July
Iluka mineral sands EBITDA triples in H1 2011
Kenmare's revenue increases on higher prices
Shandong Qifeng leads China's decorative paper industry
AkzoNobel Shanghai exports TiO2 in 2011
Oriental Yuhong to set up two waterproof material projects
China's TiO2 demand from downstreams will increase steadly
China's TiO2 price continues to decline in Sept. 2011
Huntsman's TiO2 price increases largely in Asia Pacific
Cristal announces TiO2 price increases
Chinapursues clean production in TiO2 and coatings industry
Editor’s Note
Chinasees relatively stable economic growth under continuing high inflation. In August 2011, China's CPI decreased to 6.2% year on year, while PMI increased by 0.2% to 50.9.
Domestic TiO2 prices continue to decrease in Sept. 2011, but the weak sales status changes little. The average price of rutile TiO2 drops to USD3,125/t (RMB20,000/t) by mid-September and may fall further later in this month.
In order to promote the energy-saving and emission-reduction program, Ministry of Industry and Information Technology (MIIT) of China issued clean production technology promotion scheme (the scheme) for five industries (including TiO2 industry and coating industry) on 16 August 2011.
In the coating market, traditional wall insulation coatings lose market share significantly, while nano-coatings spring up, in line with the advocacy of environmental protection. Meanwhile, Jotun COSCO starts the construction of a new marine coating project to meet the growing demand in China.
TiO2 China Monthly Report, a monthly publication issued by CCM International on 25th of every month, will penetrate into Chinese TiO2 market from a global view, deeply analyse TiO2 industrial chain and manufacturers’ competitiveness and trace the latest industrial hotspots and dynamics, aiming to provide the most valuable information about China’s TiO2 industry.
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