Venator in €60m deal to sell UK titanium dioxide plant to China’s LB Group

Wynyard, UK – Venator Materials UK Ltd has signed an agreement to sell its Greatham, UK site and associated titanium dioxide (TiO2) pigment assets to China-based LB Group, the company announced 16 Oct.

Headquartered in Jiaozuo, China, LB Group is a manufacturer of TiO2 pigments and titanium sponge.

The Greatham site, according to Venator, is transitioning into an idle state due to "challenging market conditions that have impacted financial performance."

Despite this, Venator said LB Group remains committed to acquiring the site with the intention of restarting operations in the future.

Completion of the transaction remains subject to regulatory approvals and several customary closing conditions.

In a separate stock exchange filing, LB Group said the acquisition, valued at $70 million (€60 million), is being carried out through its European subsidiary Billions Europe Ltd.

The LB announcement stated the acquired factory is the only chloride-based titanium dioxide production within the Venator Group, with a designed annual production capacity of 150 kilotonnes.

Separately, LB said that it is setting up a UK subsidiary - LB British Titanium Industry  - with a registered capital of $50 million, to be based in London.

The subsidiary, it said, “a key step in implementing its overseas development strategy.”

Commenting on the deal, Karen Askwith, managing director of Venator Materials UK said it "reflects LB Group's confidence in the site's expertise, operational strength and the value it brings to the TiO2 industry.”

"This agreement reflects LB Group's strategic commitment to supporting European TiO2 customers and expanding its global footprint,” said Ran Xu, deputy chair of LB Group.

The deal, she said, adds new high-performance titanium dioxide products to the group’s global portfolio, and increases its global competitiveness.