The Chemours Company Temporarily Pauses Titanium Dioxide Production at Altamira, Mexico Site Amid Severe Regional Drought

Rhea-AI Summary

Amid severe drought conditions in Mexico, The Chemours Company (CC) has temporarily paused Titanium Dioxide (TiO2) production at its Altamira, Mexico facility. This decision complies with a government request to minimize water intake, conserving water for local communities. Despite this, Chemours plans to maintain customer service through its other global assets. The company is collaborating with government, business, and community partners to find both short-term and long-term solutions but is currently unable to predict the duration of the production pause.

Positive

• Chemours is collaborating with government, business, and community partners to find solutions.
• The company remains committed to serving customers through its other global assets.

Negative

• Temporary pause in TiO2 production at the Altamira facility.
• Uncertainty regarding the duration of the production halt.
• Potential negative financial impact due to halted production.

Insights

Financial Analyst

The Chemours Company's decision to temporarily halt production at its Altamira facility due to severe drought conditions has both immediate and potential long-term financial implications. In the short term, the interruption of titanium dioxide (TiO2) production could impact revenue, as this material is a significant part of Chemours' portfolio. Investors should monitor any forthcoming quarterly reports for indications of reduced sales and potentially increased production costs as the company compensates through other facilities. Moreover, 80% of Chemours’ TiO2 production is based on contracts, which might provide some revenue stability, but spot market sales could be affected.

In the long run, geopolitical and environmental risks are becoming increasingly critical for industries relying on natural resources. The company's ability to adapt and mitigate such risks can influence investor confidence. The company's collaboration with local entities to find sustainable solutions and their commitment to serve customers from other assets suggests a proactive approach. However, the uncertainty surrounding the duration of the production halt adds a layer of risk that needs to be considered.

Market Research Analyst

Titanium dioxide (TiO2) is essential in various products, from paints to plastics and any disruption in its supply can ripple through multiple industries. Chemours’ pause in production at Altamira might lead to short-term supply constraints, potentially affecting market prices. Competitors might temporarily benefit if they can meet the demand gap. However, given Chemours’ significant market presence, a prolonged pause could lead to a shift in market dynamics, with customers seeking more stable suppliers.

From an innovation perspective, Chemours’ initiative to work on long-term solutions could lead to advancements in sustainable practices, potentially boosting their market position if they succeed. Investors should keep an eye on any strategic shifts or investments in technology that the company might announce as part of their mitigation efforts.

WILMINGTON, Del.--(BUSINESS WIRE)-- As a result of the severe drought impacting much of Mexico, The Chemours Company (“Chemours”) (NYSE: CC), a global chemistry company, today announced it is complying with a request from the government to temporarily minimize water intake, which has led to a pause in production at its Altamira Titanium Dioxide (TiO₂) manufacturing facility to conserve water for the surrounding communities.

Chemours remains committed to serving customers through its other world class assets. We are working closely with government, business, and community partners to identify and implement short-and long-term solutions.

At this time, Chemours cannot predict this event’s duration due to the uncertainty of the factors outside of its control.

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 serve customers through other assets, our plans to work with the government and other entities, our plans to identify and implement solutions, and our inability to predict the duration of the event, 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, and changes in environmental regulations in the U.S. or other jurisdictions that affect demand for or adoption of our products, 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/20240531984819/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

Jess Loizeaux

Communications Leader – Crisis, Issues & External Affairs

+1.302.685-8554

media@chemours.com

Source: The Chemours Company

FAQ

Why did Chemours pause TiO2 production at its Altamira facility?

Chemours paused TiO2 production at the Altamira facility due to a government request to minimize water intake amid severe drought conditions in Mexico.

How is Chemours addressing the production pause at the Altamira site?

Chemours is working closely with government, business, and community partners to identify short-and long-term solutions while maintaining customer service through its other global assets.

When will Chemours resume TiO2 production at the Altamira facility?

The duration of the production pause at the Altamira facility is currently uncertain due to factors outside of Chemours' control.

What is the stock symbol for Chemours?

The stock symbol for Chemours is CC.