PPG industries, a US-based leading coatings and specialty materials company, recently announced it plans to increase purchases of chloride-based titanium dioxide (TiO2) from Henan Billions Chemical Co Ltd, which just completed manufacturing and research facility in Henan province.

Scheduled to start production in the first quarter of 2015, the facility will manufacture volumes of TiO2 using a chloride-based process that was licensed by PPG.

With over 30 plants in the Asia-Pacific, 14 of which are located on the Chinese mainland, PPG said its Chinese factories purchase raw materials such as resin, TiO2 and pigments valued at about $500 million per year.

"The output of titanium dioxide in China still cannot meet the increasing demand in this market, pushing the price high." said Viktoras R. Sekmakas, PPG executive vice-president.

PPG has transferred some raw materials manufacturing technologies to Chinese suppliers, fueling the production rates and high-quality standards needed for the manufacture of PPG coatings products in China and the Asia-Pacific region.

"With the greater demand of the domestic market, PPG is planning to work with high-quality suppliers to meet our demand in China, instead of importing the material from overseas," said Viktoras.

According to the report, the Billions plant is expected to produce up to 100,000 metric tons of chloride-based TiO2 per year, part of which will be supplied to PPG.

"It is a win-win relationship where suppliers can expand their business with the new technology," he said.

Now the company plans to boost production of its automotive and industrial coatings in western China to better supply related industries in the region.

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