PPG (NYSE:PPG) and Lomon Billions today announced an expanded, multi-year titanium-dioxide (TiO2) supply agreement. Under the agreement, Lomon Billions will supply additional quantities of chloride- and sulfate-based TiO2 to PPG from Lomon Billions’ existing manufacturing capacity. In addition, PPG has committed to purchasing additional supplies of chloride-based TiO2 from new manufacturing capacity that is currently being constructed by Lomon Billions and is expected to be on line in 2019. Lomon Billions is one of the world’s leading TiO2 suppliers. Commercial terms of the agreement were not disclosed.
“Over the past six years, Lomon Billions has been an excellent partner as the company has become the fourth largest global supplier of TiO2,” said Tim Knavish, PPG senior vice president, who oversees PPG’s global supply management function. “This multi-year expansion of our supply agreement is a reflection of our continued confidence in the growing capability of Lomon Billions and their commitment to make ongoing investments in additional TiO2 manufacturing capacity. We look forward to continuing our work with Lomon Billions.”
“As Lomon Billions continues its growth through investing in innovative manufacturing of chloride- and sulfate-based TiO2, PPG has been one of our most important partners,” said Ruiqing Tan, Vice Chairman of Lomon Billions, who oversees the company’s supply and sales functions. “This multi-year expansion agreement will create additional value for both companies. We look forward to continuing our partnership with PPG.”
TiO2 is an important raw material widely used by PPG and other paint and coatings manufacturers as a pigment to provide hiding, durability and whiteness characteristics.