The Chemours Company Resumes Production at its Titanium Dioxide Site in Altamira, Mexico

Rhea-AI Summary

The Chemours Company (NYSE: CC) has resumed production at its titanium dioxide (TiO2) facility in Altamira, Mexico. The site had temporarily ceased operations on May 31, 2024, due to government-imposed water intake restrictions. The resumption follows the lifting of these restrictions by the Mexican government. Chemours, a global leader in Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials, anticipates that this development will help stabilize its production capabilities and supply chain. This resumption is a critical operational step for Chemours, ensuring continued service to its clients and maintaining market position.

Positive

• Resumed production at the TiO2 facility in Altamira, Mexico.
• Lifting of government water intake restrictions.
• Stabilization of production capabilities and supply chain.

Negative

• Temporary pause in production on May 31, 2024.

Insights

Market Research Analyst

The resumption of production at Chemours' Titanium Dioxide (TiO2) site in Altamira, Mexico is a significant development. TiO2 is a key component in various end-use markets, including paint, plastics and coatings. With the site back in operation, Chemours can meet the demand more effectively, which could potentially stabilize or even increase market share. The earlier production pause may have caused supply constraints, potentially leading to price adjustments in the market. The resolution of the issue could reduce such fluctuations, providing more predictable revenues.

In the short term, the market should respond positively as supply chain disruptions are minimized. For the long term, continuous operation of the Altamira facility ensures Chemours remains competitive in the TiO2 market, supporting revenue streams and maintaining customer relationships. This move can reassure investors about the company’s operational resilience.

Financial Analyst

Resuming production at the Altamira site can have direct financial implications. The temporary halt likely impacted quarterly revenue and profit margins. Now, normal operations can mitigate further losses and potentially boost earnings in the upcoming quarters. This event underscores the importance of operational stability in manufacturing-heavy industries. Investors should keep an eye on future financial disclosures to see the precise impact on the company’s financial health.

The decision by the Mexican government to lift water intake restrictions also suggests a favorable regulatory environment, which is a positive signal for continuous operations. However, investors should be mindful of the potential non-recurring costs related to the temporary pause, such as re-startup expenses, which might briefly affect profitability.

WILMINGTON, Del.--(BUSINESS WIRE)-- The Chemours Company (“Chemours” or “the Company”) (NYSE: CC), a global chemistry company with leading market positions in Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials, today announced that the Mexican government has lifted its prior water intake restrictions, enabling the Company to resume normal operations at its titanium dioxide (TiO₂) manufacturing facility in Altamira, Mexico. The Company previously announced a temporary pause in production on May 31, 2024.

About The Chemours Company
The Chemours Company (NYSE: CC) is a global leader in Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials providing its customers with solutions in a wide range of industries with market-defining products, application expertise and chemistry-based innovations. We deliver customized solutions with a wide range of industrial and specialty chemicals products for markets, including coatings, plastics, refrigeration and air conditioning, transportation, semiconductor and consumer electronics, general industrial, and oil and gas. Our flagship products are sold under prominent brands such as Ti-Pure™, Opteon™, Freon™, Teflon™, Viton™, Nafion™, and Krytox™. The Company has approximately 6,200 employees and 28 manufacturing sites, and serves approximately 2,700 customers in approximately 110 countries. Chemours is headquartered in Wilmington, Delaware and is listed on the NYSE under the symbol CC.

For more information, we invite you to visit chemours.com or follow us on X (formerly Twitter) @Chemours or on LinkedIn.

Forward-Looking Statements
This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a historical or current fact. The words "believe," "expect," "will," "anticipate," "plan," "estimate," "target," "project" and similar expressions, among others, generally identify "forward-looking statements," which speak only as of the date such statements were made. These forward-looking statements may address, among other things, our intent to resume normal operations at our TiO₂ manufacturing facility in Altamira, Mexico, all of which are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements are based on certain assumptions and expectations of future events that may not be accurate or realized, such as full year guidance relying on models based upon management assumptions regarding future events that are inherently uncertain. These statements are not guarantees of future performance. Forward-looking statements also involve risks and uncertainties that are beyond Chemours' control. Matters outside our control, including a continued prolonged drought in the impacted areas of Mexico, general economic conditions, geopolitical conditions and global health events and weather events, have affected or may affect our business and operations and may or may continue to hinder our ability to provide goods and services to customers, cause disruptions in our supply chains such as through strikes, labor disruptions or other events, adversely affect our business partners, significantly reduce the demand for our products, adversely affect the health and welfare of our personnel or cause other unpredictable events. Additionally, there may be other risks and uncertainties that Chemours is unable to identify at this time or that Chemours does not currently expect to have a material impact on its business. Factors that could cause or contribute to these differences include the risks, uncertainties and other factors discussed in our filings with the U.S. Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. Chemours assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240624566894/en/

INVESTORS

Brandon Ontjes

Vice President, Investor Relations

+1.302.773.3300

investor@chemours.com

Kurt Bonner

Manager, Investor Relations

+1.302.773.0026

investor@chemours.com

NEWS MEDIA

Cassie Olszewski

Media Relations and Financial Communications Manager

+1.302.219.7140

media@chemours.com

Source: The Chemours Company

FAQ

When did Chemours resume operations at its Altamira, Mexico facility?

Chemours resumed operations at its Altamira, Mexico facility after the Mexican government lifted water intake restrictions. The production was previously paused on May 31, 2024.

What caused the temporary production pause at Chemours' Altamira facility?

The temporary production pause at Chemours' Altamira facility was due to government-imposed water intake restrictions.

What does the resumption of production at Chemours' Altamira site signify?

The resumption of production at Chemours' Altamira site signifies stabilization of its production capabilities and supply chain.

What is the stock symbol for The Chemours Company?

The stock symbol for The Chemours Company is CC.

What are the key market positions of Chemours?

Chemours holds leading market positions in Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials.