Lomon Billions Commitment & Challenge · 2016-11-09 · 4 billions main products-sulphate公司概况process tio2 grade主营业务coatings grades-blr-699-blr-698-blr-601profile and

TZMI

2016.11.09

Lomon BillionsCommitment &Challenge

LOMON BILLIONS CO.,LTD. COPYRIGHTS RESERVED.


Content

3

1

2Commitment

Company Introduction

Challenge


Content

1Company Introduction

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公司概况主营业务Billions Main products-Sulphate Process TiO2 Grade

COATINGS GRADES

- BLR-699

- BLR-698

- BLR-601

PROFILE AND PIPE GRADE: BLR-688

PLASTIC AND MASTERBATCH GRADE: BLR-681

PAPER GRADE: BLR-674

INK GRADES:

- TR52

- BLR-631

CATALYST GRADES: BLD-A01/02/03/04/05

UNCOATED RUTILE GRADE: BLR-501

ANATASE GRADE: BLA-200


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公司概况主营业务Billions Main products-Chloride Process TiO2 Grade

TWO COATINGS GRADES

- BLR-895

- BLR-896

PLASTIC AND LAMINATE PAPER GRADES

- BLR-885

- BLR-886

- BLR-874


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公司概况主营业务Billions Facilities- Sulphate process TiO2 production

– Manufacturing for nearly 30 years

– 250kt annual capacity

– Producing a portfolio of TiO2

pigments

– Coatings, Plastics, Inks, Paper


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公司概况主营业务Billions Facilities- Chloride process TiO2 production

– Construction of 366,000 m2 plant complete

– Initial phase giving 60kt chloride TiO2

– Commercial production October 2015


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公司概况主营业务Billions Sales Volume

0

50

100

150

200

250

Sales Volume (kt)

105.5

145.2

228.6

180

109.7100.771.2

2009

2010

2011

2012

2013

2014

2015

22.3

51.9

68.760.9 62.3

88.596.9

0

20

40

60

80

100

120

2009 2010 2011 2012 2013 2014 2015

Export Volume(kt)

Export Volume(kt)

Sales Volume (kt) Export Volume (kt)

Estimated Sales Volume(kt)

Note: The volume includes the one of Billions Europe Ltd. and Billions America


210250 250

50

60 80

0

50

100

150

200

250

300

350

2016 2017 2018

Sulphate Chloride

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公司概况主营业务Billions Titanium Slag- Feedstock of Chloride Process TiO2

– Own Titanium slag plant

– 150kt annual capacity


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公司概况主营业务Billions Facilities-Technology Centre

– 12,000 m2 purpose –built centre

– Development, application testing & technical support

– >800 technologists focused on R&D and technical support

– one of the National Enterprise Technology Centers and the testing center

– is certified to achieve the national laboratory standard.


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公司概况主营业务Billions Zirconium Products

Annual capacity

– ZOC: 25kt

– ZrO2 Powder: 3000mt

– Zirconia Ceramic: 300mt


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公司概况主营业务Billions Overview- Investing for the Future

CONSTRUCTION OF CHLORIDE TiO2 LINE

- Up to 60kt capacity

- Commercial production October 2015

MERGER WITH LOMON

- Successfully completed

NEW TECHNOLOGY CENTRE

- 12,000 m2 purpose-built centre

- Development & application testing

- Technical support

- More than 800 technologists

PURCHASE OF TR52

- Long-term strategic vision of growth in

specialist markets

- Investment in production facilities


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公司概况主营业务Billions Industrial Chain for a Sustainable Future


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Main Products：Titanium Dioxide, IlmeniteBase 1: Deyang, Sichuan province, ChinaBase 2: Xiangyang, Hubei province, ChinaBase 3: Panzhihua, SiChuan province, China

Deyang

Panzhihua

Xiangyang

Lomon Core Business and Location


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BASE: Deyang SichuanTiO2 Capacity: 250kt/yearSulphric Acid Capacity: 900kt/year

Lomon TiO2 production line


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Base: Xiangyang, Hubei Province, ChinaTiO2 Capacity: 150kt/yearSulphuric Acid Capacity: 400kt/year

Lomon TiO2 Production Line


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行业地位及销售增长

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

内销出口

5.23

14.24

0.31 1.56 3.29

4.345.93

7.47

10.69

16.94

23.12

Unit：10kt

31.5

34

Both the production quantity and the export quantity continuously be the No. 1 in China from 2011 to 2014

Lomon TiO2 Sales Volume

Domestic Export


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龙蟒钛业钛矿生产能力

BASE： PanzhihuaCapacity: Ilmenite Concentrate: 700kt/year

Iron ore Concentrate: 3 million t/year

Lomon Facility- Panzhihua Ilmenite


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Lomon Mine & Mining Facility


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Lomon Ilmenite Concentrating Facility


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Lomon Billions- Competition in the market

Lomon Billions total TiO2 capacity will exceed 700kts



Content

2 Commitment

23

TiO2 preformance

TiO2 is considered to be the best white pigment in the world.

TiO2 Performance Characteristics:

High whiteness and Strong Hiding powerHigh DispersibilityStrong Weatherability

Non Substitute Product


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TiO2 Application

Mainly Application:

coatings: 60%

plastics: 20%

papermaking: 14%

Printing Ink and others: 6%



Globle TiO2 Production Quantity

From 2011 to 2015, the globle TiO2 production quantity average increasing rate is about 1.75%


Globle Coating Production Quantity

From 2011 to 2015, the globle coating production quantity average increasing rate is more than 5%


TiO2 Performance Upgrade

TiO2 is the main raw material for coatings

In the past 10 years, the globle coating production quantity average increasing rate is higher than the globle TiO2 production quantity average increasing rate.

Mainly is due to TiO2 performance in coating industry is upgrading:-TiO2 Dispersibility improved -TiO2 Dispersion coefficient improved from 15μm to (5-7.5)μm


TiO2 Demand in coating industry will increase

As estimated, from 2016 to 2020, the global coating production quantity yearly increasing rate will be at least 5%

From 2016, the global TiO2 quality and performance have reached to a higher level and will keep stable

With the increasing of global coating production quantity, The global TiO2 demand in coating industry will increase at the similar rate 5%.


Lomon Billions Commitment in Coating industry

Lomon Billions plan to build new Chloride process TiO2 production line with capacity of 200kts, and would put into production in 2019

To meet the global TiO2 demand increasing in coating industry


Content

3Challenge


Challenge


TiO2 Raw Material Supplying

In recent years the ilmenite price keep dropping

Till Q1 2016, the Ilmenite price dropped to the bottom

Especially, from 2014 global ilmenite production plant almost all lose money

From Q2 2016, the ilmenite price stop dropping and begin increasing, but the financial situation of most global ilmenite production plants is still not good


High Debt Ratio in China TiO2 Industry

In China, the TiO2 industry development is accompanied by National Investment Expansion

TiO2 construction cycle generally is 2-3 yearsFrom 2013 to 2015, earlier investment began to release productivity, serious supply exceeded demand, this lead 2015 to be the TiO2 market bottom

The past over-investment have become the burden of TiO2 industry, TiO2 industry has very high debt ratio

Most of China TiO2 manufacturers now are facing very high debt ratio

低下产能


High Debt Ratio in Multinational TiO2 manufacturers

At present, Multinational TiO2 Manufacturers also are facing very high debt ratio and also other troubles

低下产能


Environmental Protection

From Jan. 1st 2015, China Environmental Law revised draft formal enforcement.

Which is referred to as “the most strict environmental law in the history”

The Law articles revised from 47 to 70

Continuous penalty rules designed by the day

Severe punishment of pollution phenomenon

Strengthen legal enforceability and operability


China TiO2 Energy Consumption New Policy

In Nov. 2015, China issue “TiO2 Limitation of Energy Consumption per unit” Standard.

The new Standard have formally come into effect on Oct. 1st, 2016

After the introduction of new standard, is expected to eliminate about 20% annual production capacity in China


Environmental Protection

2015 China TiO2 production quantity is about 2.32 million ton, thereinto, about 98% is Sulphate process TiO2.

So most of China TiO2 plants are facing big environmental protection pressure.

Some Sulphate process TiO2 plants in China were forced to stop production due to environmental protection issues


Billions Environmental Protection

Billions have complete environmental protection facilitiesHave achieved clean production

Treatment Facility for Waste Water and Waste solid


Billions Environmental Protection

Middle Water Recycling Facility


2015 China total TiO2 production quantity is 2.32 million ton

TiO2 makers which can maintain normal production and have a certain size are about 42

The TiO2 production/makers are scattered

This is different with world TiO2 market

China TiO2 industry Consolidation is a trend

China TiO2 Industry Consolidation


Area TiO2 Maker Date Merger and AcquisitionUnderlying Asset

Capacity

Abroad

Huntsman 2014.10Acquisition of Rockwood

Sachtleben340kt

Cristal 2015.1Acquisition of Jiangxi Tikon TiO2

business50kt

China

Henan Billions 2014.9Acquisition of Huntsman TR52（not including the production

line）

Henan Billions 2015.5 Merger with Lomon 300kts

Since 2014, leading companies have accelerated the pace of mergers and acquisitions both in China and abroad, to further improve the market concentrationWith the developmemt of industry consolidation, the whole Industry will upgrade the bargaining power on downstreams

TiO2 Industry Consolidation


Eliminate outdated production(high pollution/small size)Promote industrial upgrading

Reduce debt ratio,Prevention financial risks

Promote industrial consolidation, development of scale economy

Sustainable DevelopmentAchieve

Sustainable Development

Thank you for yourcontinuing supportto Lomon Billions


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Lomon Billions Commitment & Challenge · 2016-11-09 · 4 billions main products-sulphate公司概况process tio2 grade主营业务coatings grades-blr-699-blr-698-blr-601profile and