DKSH cooperates with Australian TNG to exclusively market titanium dioxide
DKSH’s Business Unit Performance Materials, a leading ingredients and specialty chemicals distributor, will provide a full range of Market Expansion Services, including marketing and sales, distribution and logistics as well as technical support for TNG’s high purity TiO2 on a life-of-mine basis from its flagship Mount Peake Vanadium-Titanium-Iron Project, located in Australia’s Northern Territory. The two companies today signed a term-sheet for a TiO2 capacity up to 150,000 tons per year.
TiO2 is a naturally-occurring oxide of titanium and the most used white pigment in multiple applications, including coatings, plastics, laminated paper and printing inks, as well as fiber products. This pigment is characterized by its opacity, brightness, gloss, tone and under-tone, lightening power (tinting strength), water resistance, durability and abrasiveness.
DKSH will distribute the TiO2 to the coatings industry globally, excluding the Iberian Peninsula and Nordic countries. DKSH has a track record in the distribution of TiO2 and sales are synergic with the existing product offering addressed to the same customer base.
DKSH and TNG have agreed to move towards a Binding Off-take Agreement reflecting the key points set forth in the term sheet.
Dr. Natale Capri, Co-Head Business Unit Performance Materials, DKSH, said: “With our market coverage and long-standing successful track-record in the worldwide distribution of specialty chemicals to the plastics and coatings industry, we are TNG’s optimal partner to exclusively market their titanium dioxide pigments. Our customers worldwide will benefit from a reliable and steady supply of high-quality products. We are delighted to team up with TNG and jointly market the products made by their unique process.”
Paul Burton, Managing Director, TNG, commented: “We are very pleased to have the opportunity to work with a company of DKSH’s pedigree for our world-class Mount Peake project. This represents another major step forward for TNG and its shareholders. I and my entire team are very much looking forward to the long term and strategic relationship for our titanium dioxide business as well as the potential future growth opportunities this agreement brings.”