ICI offshoot drops Canadian project
Tioxide is paying dollars 200m ( pounds 138m) for a 50 per cent stake in a plant at Lake Charles, Louisiana, recently built by Kronos, a subsidiary of the US tioxide specialist NL Industries. The deal is subject to regulatory approval.
The joint venture means Tioxide has suspended its plans to build a plant in Becancour, Quebec, and will close part of its operation at Tracy, also in Quebec, with the loss of 60 jobs.
The group began construction at Becancour six months ago and it was due to be operational in 1995. Tioxide has already spent dollars 30m of the budgeted dollars 150m on the plant, which would have had capacity of 60,000 tonnes a year compared with 100,000 at Lake Charles.
The Becancour plant was planned because of concern about waste discharges from Tracy, which uses sulphate rather than the cleaner chloride technology.
Alan Pedder, Tioxide's chairman and chief executive, said: 'We had hoped to maintain our North American presence by continuing to run Tracy until 1994, but it became clear that this arrangment did not have the approval of the environmental authorities.'
Brian Thomas, Tioxide's planning manager, said the plans had simply been mothballed and the plant might still be built if demand for tioxide improved. It has been badly hit by the recession.
Mr Thomas added that the joint venture would give Tioxide immediate access to the product, eliminating a two-year wait for construction at Becancour. It would also give it access to Kronos's chloride technology, which Tioxide has been developing for itself at a pilot plant.
Tioxide is the largest producer of titanium dioxide in Europe, and exports some of its produce to the US, where it has an 8 per cent share of the market.
World news in pictures
Far-right French historian, 78-year-old Dominique Venner, commits suicide in Notre Dame in protest against gay marriage
Plenty of Fish dating site founder pulls 'Intimate Encounters' option to ward off sleazy men
Oklahoma tornado: Rescue effort nears an end as authorities say they are confident there are no bodies or survivors left in the rubble
Video emerges of Pope Francis reportedly performing an exorcism in St Peter’s Square
- 1 Gay couple beaten in park urge MPs to moderate language on gay marriage
- 2 Swedes set up 'ultimate Viking movie'
- 3 After woman sells virginity for $780,000, here are the results of our prostitution survey
- 4 China agrees to impose carbon targets by 2016
- 5 Far-right French historian, 78-year-old Dominique Venner, commits suicide in Notre Dame in protest against gay marriage
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Win anything from gadgets to five-star holidays on our competitions and offers page.
iJobs Money & Business
Negotiable: Orgtel: SAS BI Content Developer - Bristol - Up to £370/day! Our C...
£850 - £1000 per day: Orgtel: Programme Change Manager - Banking - London - £8...
£180 - £230 per day: Orgtel: Operations Analyst - Leading Bank in the City of ...
£500 per day: Orgtel: A top tier banking client urgently requires Finance Busi...