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| Tronox |
Closure of Botlek Facility Part of Cost-Cutting Strategy to Counter Chinese Overcapacity
Tronox has idled its titanium dioxide (TiO₂) plant in Botlek, the Netherlands, as part of a broader strategy to streamline operations and combat structural challenges in the global pigment market. The 90,000-ton-per-year plant was initially shut down on March 6 due to an outage at its chlorine supplier, but the company has decided not to restart the site.
This decision, driven by a strategic asset review, reflects Tronox’s response to ongoing overcapacity in China and more than two years of sustained market pressure. CEO John D. Romano stated that this action supports the company's cost optimization goals and better positions it for long-term competitiveness.
While the non-cash write-down from the closure is expected to reach $55–$65 million, Tronox projects over $30 million in annual cost savings starting in 2026. These will be in addition to the $175 million in previously announced savings targeted by year-end 2026.
Tronox will reallocate production to its eight remaining TiO₂ pigment plants in the US, Australia, South Africa, Brazil, and the UK. The company emphasized that this shift will not disrupt customer supply commitments, thanks to its globally diversified footprint.
In Q4 2024, Tronox reported a 3% year-over-year increase in TiO₂ revenue, reaching $533 million, driven by a 4% rise in shipment volumes, despite a 1% decline in average selling prices. The company expects sales volumes to strengthen in 2025, especially in the latter half of the year.
As the global TiO₂ industry undergoes a significant realignment of capacity and pricing power, Tronox’s closure of the Botlek facility underscores its proactive efforts to safeguard profitability and market share.
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