New pattern of titanium dioxide industry in China

wallpapers Industry 2020-12-09

Bailian's merger and acquisition of longmang titanium dioxide industry has changed the pattern of small-scale production in China for many years and made the industry take a new step towards internationalization. After the acquisition with an estimated value of 9 billion yuan, the merger of the two companies will become the absolute leader in the domestic titanium dioxide industry, and the production capacity of Bailian titanium dioxide will be increased from 260000 tons / year to nearly 600000 tons / year. Become the fourth largest titanium dioxide enterprise in the world. Since 2008,


have attracted many investors due to the "hot" titanium dioxide market, resulting in the rapid expansion of domestic titanium dioxide production capacity in the short term. In 2012, the market price fell all the way, from the highest point of 23000 yuan per ton to 12000 yuan per ton last year, a drop of nearly 50%. The root cause of the price slump is the serious imbalance between supply and demand. According to the public data, from 2006 to 2013, the production capacity of titanium dioxide in China increased from 1.14 million tons to 2.8 million tons, with an average annual growth rate of 13.7%. As the largest titanium mineral resource reserve Province in China, Sichuan titanium dioxide production enterprises have increased from less than 10 to nearly 20. There are giants such as longmang titanium industry, and more are small enterprises with production capacity less than 100000 tons. Small and medium-sized titanium dioxide enterprises are struggling to survive. From the international market point of view, although China is the largest producer and consumer of titanium dioxide, due to the scattered production capacity and low-end products, it lacks pricing power of products, especially high-end products. Bailian's acquisition of longmang means that the domestic titanium dioxide industry is concentrated and a new industry pattern appears.

Bailian also said in the acquisition report that the domestic titanium dioxide industry "urgently needs to form its own industry giant to increase investment in product research and development, enhance the added value and profit level of products, and enhance the international pricing ability." Li Jiaquan, the actual controller of longmang titanium industry, is also very confident in the future, and promises that the net profits of the acquired assets will not be less than 700 million yuan, 900 million yuan and 1.1 billion yuan respectively within the three-year profit commitment period.

some titanium dioxide enterprises in Sichuan hope that this round of acquisition can add fire to the gradually warming titanium dioxide market. With the contraction of production capacity and the improvement of international demand, the price of titanium dioxide has rebounded since the end of last year. At present, the average price of domestic mainstream titanium dioxide products has risen to 13000 yuan per ton. "Industry M & A may stabilize prices in the short term, but titanium dioxide prices continue to rise, lack of motivation." Industry insiders believe that giants can control the supply side, but the domestic demand side is still weak. The


long Bai marriage opened the curtain of industry integration, and stimulated other enterprises such as CNKI, Shandong Dongjia and Jinpu titanium industry to imitate each other, so as to accelerate the process of industry integration. Sichuan titanium dioxide industry integration may also usher in new opportunities. "Other enterprises are welcome to purchase or invest in shares." Wang Yong, chairman of Panzhihua Yunda Titanium Industry Co., Ltd., believes that industry integration is imperative. His views are very representative among enterprises in the province. "The price of Bailian titanium dioxide does not increase, and small enterprises have no confidence to raise the price; when Bailian reduces the price, small enterprises have to reduce the price." Peng Tianzhu, vice president of Panzhihua vanadium titanium association, believes that small enterprises have no right to speak. With the increasing investment in environmental protection, the future of small enterprises will either be merged by other enterprises, or develop high-end products in depth and explore market segments. However, this requires high investment, which small enterprises can not afford. How to integrate and expand the titanium dioxide enterprises in Sichuan is still a problem for Peng Tianzhu. "It has been proposed for many years to promote the integration of titanium dioxide industry in Panzhihua City, but the progress is not obvious." According to reports, there are 13 titanium dioxide production enterprises in Panzhihua City, with the largest production capacity of 120000 tons. Most enterprises have a production capacity of less than 100000 tons. Their scale is small and scattered, and their competitiveness is not strong. "With the demonstration effect of giant mergers and acquisitions, and the rising price of titanium dioxide, the market is paying more attention to titanium dioxide, which may be an opportunity for Sichuan enterprises to seek integration." Peng Tianzhu thinks.

it is reported that some titanium dioxide or titanium dioxide upstream enterprises in Panzhihua have extended olive branches to investors. Xudong titanium industry, Yuanfeng titanium industry, Yuantong titanium industry and Yunda titanium industry in Panzhihua City have collectively put up the announcement of equity transfer or capital increase and share expansion in the southwest United Property Exchange to seek cooperation.

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