August 05, 2024 – The recently released 2024 half-year reports from multiple listed companies have unveiled significant disparities in their operational performances during the first half of the year. In this contest between declining and doubled profits, product quality and market acceptance have emerged as decisive factors. Notably, within the focal point of the chemical industry—the titanium dioxide sector—Lubei Chemical has demonstrated particularly impressive results. According to reports, Lubei Chemical is expected to achieve a net profit attributable to its shareholders of approximately 150 million yuan in the first half of 2024, marking a substantial increase of approximately 137.4081 million yuan or about 1091% compared to the same period last year. This remarkable growth is primarily attributed to the company’s proactive market expansion, which led to a year-on-year increase of approximately 28.57% in product sales volume and a 5.36% rise in selling prices.
Lubei Chemical’s performance not only highlights its professional prowess in the titanium dioxide industry but also signifies its strong confidence in the sector’s future development. According to insights from Color Masterbatch Industry Network, Lubei Chemical plans to raise up to 300 million yuan through private placement, which will be allocated to the expansion project of an annual output of 60,000 tons of chloride process titanium dioxide. With a total investment of 719 million yuan, this project is being implemented by its wholly-owned subsidiary, Xianghai Technology. This capacity expansion aims to further enhance the company’s titanium dioxide production capacity and market share, bolster its core competitiveness, refine its strategic layout, and ultimately provide downstream enterprises with superior and efficient titanium dioxide products.
Since its establishment in 1996 as an exclusive initiative of Shandong Lubei Enterprise Group Corporation, Lubei Chemical has evolved into a large-scale listed company over the past two decades. Its primary business encompasses titanium dioxide, methane chlorides, fertilizers, cement, raw salt, and other sectors, with titanium dioxide serving as its core business segment and being managed by two wholly-owned subsidiaries: Jinhai Titanium Industry and Xianghai Technology. Leveraging its superior product quality, Lubei Chemical has forged strong partnerships with major terminal clients such as Hongmei and Meilian.
In recent years, the titanium dioxide industry has vigorously pursued the development of chloride process production technology. Compared to the traditional sulfate process for titanium dioxide production, the chloride process offers advantages such as shorter process flow, enhanced continuity, smaller equipment footprint, higher production capacity, greater automation, better product quality, and reduced “three wastes” emissions. Lubei Chemical is one of the few domestic enterprises equipped with both sulfate and chloride processes for titanium dioxide production. Its chloride process technology boasts significant advantages in terms of product quality, comprehensive energy consumption, and environmental pressure. The company has continuously advanced product upgrades and technological innovations in recent years, such as completing the transformation and upgrading of its R6658 rutile titanium dioxide product, which features a blue undertone, easy dispersion, low volatile content, low oil absorption, excellent yellowing resistance, and good processing rheology.
With its deep roots and extensive expertise in the titanium dioxide industry, Lubei Chemical’s capabilities have garnered widespread recognition. The company has received numerous honors, including “National Environmental-Friendly Enterprise,” “Top 500 Chinese Chemical Enterprises,” and “China Famous Brand Certification.” It is also a prominent producer in the global titanium dioxide industry, with its products exported to over fifty countries and regions, including the United States, Korea, India, Thailand, Canada, Pakistan, Turkey, and Malaysia.
Looking ahead, Lubei Chemical attributes its performance growth to market acceptance. The largest consumer market for titanium dioxide in China is the coatings industry. Despite the challenges posed by the three-year pandemic period, Lubei Chemical has consistently adhered to self-regulation, structural adjustments, and product optimization. As market concentration increases in the future, competition will intensify, leading to a process of survival of the fittest. In response to the recovery in downstream sectors, Lubei Chemical will continue to propel the company forward, striving to become an environmentally friendly, high-end, and influential leading enterprise.