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The world’s third largest producer of titanium dioxide (titanium dioxide): Venator Materials (VNTR) (2017)

Venator Materials PLC (NYSE: VNTR) was registered and established under the laws of the United Kingdom and Wales on April 28, 2017. It was originally a subsidiary of Huntsman Materials , the world’s largest private chemical company , and submitted its prospectus on 5/5/2017. It is listed separately, headquartered in the United Kingdom, and 4,300 full-time employees (6/30/2019). After the spin-off, Venator Materials will inherit Huntsman Corporation’s titanium dioxide (titanium dioxide) and performance additives business, becoming the world second only to Chemours Company and Kronos Worldwide The third largest producer of titanium dioxide.

Venator Materials Logo

Venator Materials PLC (VNTR):

Venator Materials mainly focuses on two aspects: Titanium dioxide (TiO 2 ) and Performance additives. The company operates 27 production facilities, employs approximately 4,500 employees worldwide, and sells its products in more than 110 countries.

Venator Materials PLC (VNTR) investment:

All common stocks sold this time will be provided by Huntsman as the selling shareholder. Huntsman has obtained a license from the US Internal Revenue Service to retain 40% of the economic interests of its subsidiary Venator Materials. At the same time, Huntsman owns 19.9% ​​of the company’s voting rights.

Huntsman CEO Peter R. Huntsman (Peter R. Huntsman) said: The license is a landmark for the separation of Venator’s business. Holding a 40% economic interest allows us to benefit from its titanium dioxide business.

Venator Materials Company was originally the Huntsman Pigment and Additives Division, and will continue to operate as an independent subsidiary after the spin-off . Venator means hunter in Latin, and this name also demonstrates the continuation of Huntsman’s blood by the new company. Huntsman’s shareholders have begun to allocate proportionately their shares in the original Huntsman Pigment and Additives Division.

For Venator materials, given the current strong price of titanium dioxide, this is also a good opportunity to adjust and optimize the corporate structure. It is predicted that the chemical reaction formed by these two factors will significantly enhance its financial strength. On average, it will bring up to 75 million U.S. dollars in earnings before interest, taxes, depreciation and amortization (EBITDA) for Venator materials each year, and optimize all structures This number will continue to increase before the adjustment is completed at the end of 2018.

According to the Form 10 form previously submitted by Huntsman, the company plans to split the business including the pigments and additives business and the textile chemicals business unit Textile Effects. The total sales in the 12 months ending June 30, 2016 are approximately It is 2.877 billion U.S. dollars, employs about 7,500 people, has 47 factories, and sells products in more than 100 countries.

Among them, in the 12 months ended June 30, 2016, the sales revenue of pigments and additives business was 2.112 billion U.S. dollars. The products were mainly used in coatings, plastics, paper, etc. The main customers were A. Schulman, Akzo Nobel, Ampacet, BASF , Clariant, DSM, Flint, Georgia Pacific, PPG, Polyone, Sherwin-Williams, etc.

As of the end of 2015, the market distribution of this business was 42% in the European market, 26% in the United States and Canada, 19% in the Asia-Pacific region, and 13% in other regions. Globally, this business unit includes 28 production plants with a total production capacity of approximately 1.3 million tons per year. Among them, there are 9 titanium dioxide production facilities in Europe, North America, Africa and Asia, one functional additive product production facility is located in Europe, and there are 13 color pigment production and processing plants in Europe, North America, Asia and Australia.

Huntsman is one of the global manufacturers and marketers of specialty chemicals . In 1998, the company entered the titanium dioxide industry after acquiring the ICI titanium dioxide business. In September 2013, the company acquired Lockwood Holdings’ high-performance additives and additives for US$1.1 billion. Titanium dioxide business has become the world’s second largest producer of titanium dioxide and inorganic pigments. Currently operating more than 100 production and R&D institutions in 30 countries, with approximately 15,000 employees, and 5 independent business units.

According to the annual report, Huntsman’s 2016 operating income was US$9.657 billion, of which: polyurethane business sales revenue was US$3.667 billion, a year-on-year decrease of 4%; performance product business sales revenue was US$2.126 billion, a year-on-year decrease of 15%; advanced materials business sales Revenue was US$1.02 billion, a year-on-year decrease of 8%; sales revenue of textile effects business was US$751 million, a year-on-year decrease of 7%; sales revenue of pigments and additives business was US$2.139 billion, a year-on-year decrease of 1%.

Venator Materials PLC (NYSE: VNTR) submitted its IPO prospectus on 5/5/2017 and listed on the NYSE on 8/3/2017 with an issue price of US$20.00 and 22.7 million shares issued, raising US$454 million. The stock code: VNTR.

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