CNNC Signs Major Supply Deal with Nippon for 2025 to 2027

On February 11, CNNC Dioxide Co., Ltd. (002145) announced a significant strategic partnership with Nippon Paint Holdings Co. This agreement establishes a titanium dioxide procurement relationship set to last from 2025 to 2027, positioning CNNC as one of Nippon's largest suppliers of this essential material.

Titanium dioxide, known for its chemical formula TiO2, is a premier white pigment, dominating approximately 80% of the global white pigment market. Its exceptional properties, including outstanding opacity, coloring strength, and durability, make it a vital component in industries like coatings, plastics, and paper.

CNNC, founded in 1989, has three major production bases and currently boasts an annual capacity of nearly 550,000 tons, with plans to expand to 700,000 tons. The company has reported impressive financial growth, with a 43.26% increase in revenue year-on-year for the first three quarters of 2024, reaching 5.149 billion yuan.

Nippon Paint, a key player in the coatings industry since 1992, has established over 74 production bases in China and employs more than 11,000 people. The company has consistently led the Chinese paint market for 25 years, achieving a sales revenue of 23.1 billion yuan in 2023.

This strategic cooperation aims to enhance operational efficiency and reduce costs for both companies. Key components of the agreement include guaranteed supply and preferential pricing for Nippon Paint, ensuring stable and prioritized access to titanium dioxide during market fluctuations.

This partnership marks a pivotal step for both companies, allowing them to leverage their strengths in the industry and improve product quality and service levels. As they work together, this collaboration is expected to solidify their market positions and drive growth in the upcoming years.