Tronox has signed a definitive agreement to acquire the TiZir Titanium and Iron (“TTI”) business from Eramet S.A., for approximately $300 million. TiZir’s TTI facility, located in Tyssedal, Norway, upgrades ilmenite to produce high-grade titanium slag and high-purity pig iron with an annual capacity of approximately 230,000 tons and 90,000 tons, respectively.
Lowering Feedstocks’ Cost for Pigment Plants
The technology and manufacturing capabilities acquired will lower the cost of obtaining the feedstocks needed to run pigment plants. It will broaden the geographic diversity of titanium feedstock operations, and improve the likelihood of a successful commissioning, ramp up, and eventual acquisition of the Jazan smelter. Tronox is excited about the opportunities created by the addition of this well-established, high-quality asset.
Acquisition to Better Serve Pigment Customers
“
This highly strategic acquisition represents the next step in advancing our vertical integration strategy, providing Tronox with increased titanium feedstock capacity to better fulfill our internal requirements, and in turn, better serve our pigment customers with a low-cost, secure source of supply. The site is ideally situated to supply feedstock to our European pigment facilities,” commented Jeffry N. Quinn, chairman and chief executive officer of Tronox.
As part of the transaction, Tronox will enter a supply agreement with Eramet’s Grande Côte Operations mineral sands mine in Senegal to provide Grande Côte’s ilmenite to TTI. For the first two years, Tronox expects the Grand Côte mine will supply substantially all of TTI’s requirements, but the volumes sold reduces throughout the term of the agreement, allowing Tronox the flexibility to supply TTI from its own mineral sands assets or other sources.
The transaction has received the unanimous approval of the Tronox and Eramet boards of directors and is subject to certain consents and customary closing conditions including regulatory approvals.
Source: Tronox