Analyst Predicts Merger of Henan Billions and Lomon Will Transform China’s TiO2 Market
GUANGZHOU, China – The merger of Henan Billions Chemicals Co. Ltd. (Henan Billions) and Sichuan Lomon Titanium Co. Ltd. (Lomon), two of China's largest TiO2 manufacturers, was announced on the Shenzhen Stock Exchange on May 5. According to CCM, a market intelligence firm that focuses on titanium dioxide (TiO2) in China, the merger will make Henan Billions by far the largest TiO2 manufacturer in China with an estimated production capacity of 520,000t/a – more than double its nearest rival – and the fourth-largest producer worldwide after DuPont, Cristal Global and Kronos Worldwide.
CCM’s TiO2 market analyst, Dean Wu, predicts that the deal will precipitate a flood of M&A activity in China’s TiO2 industry. “Joining with Lomon will help Henan Billions improve its product quality and R&D, and also lower its production costs, so its domestic rivals will be under pressure to counter this merger with their own acquisitions. It’s the only way for them to remain competitive,” commented Wu.