Venator Announces Update on Louisiana Pigment Company and SK Capital Transaction

Rhea-AI Summary

Venator Materials PLC (NYSE: VNTR) announced the resumption of production at its Lake Charles, Louisiana titanium dioxide facility following Hurricane Laura. The minor physical damage caused by the hurricane led to temporary production cessation. Full operational status is expected by October 1, with a projected EBITDA impact of up to $10 million in Q3. Venator is also progressing with SK Capital's acquisition of Huntsman's stake, with approval from independent board members.

Positive

• Production at the Lake Charles facility has resumed, expected to be fully operational by October 1.
• Management's swift response to the operational disruption is commendable.
• The acquisition by SK Capital is progressing after board approval.

Negative

• The EBITDA impact of the production outage is estimated at up to $10 million for Q3.

WYNYARD, UK, Sept. 28, 2020 /PRNewswire/ -- Venator Materials PLC (NYSE: VNTR) ("Venator") today announced that Louisiana Pigment Company, L.P. ("LPC"), its joint venture titanium dioxide production facility located in Lake Charles, Louisiana, has resumed production in increasing phases following the end of supplier outages caused by Hurricane Laura, which had led the facility to temporarily cease production.  Physical damage to the site was minor, and the site is expected to be fully operational on or about October 1.  Venator expects the EBITDA impact of the outage to be up to $10 million in the third quarter. 

Simon Turner, President and CEO of Venator, stated, "I am pleased with the rapid response by the management team and associates at the LPC facility to safely resume production as soon as energy and raw material supply were restored."   

In a further update, he also commented, "We are continuing to cooperate in the preparation of regulatory filings required for SK Capital to acquire Huntsman's equity stake in Venator.  The transaction by which SK Capital will acquire Huntsman's stake in Venator received prior approval by the nonconflicted independent members of our board, and we look forward to the expected closing of that transaction near year end."

About Venator
Venator is a global manufacturer and marketer of chemical products that comprise a broad range of pigments and additives that bring color and vibrancy to buildings, protect and extend product life, and reduce energy consumption. We market our products globally to a diversified group of industrial customers through two segments: Titanium Dioxide, which consists of our TiO₂ business, and Performance Additives, which consists of our functional additives, color pigments, timber treatment and water treatment businesses. We operate 24 facilities, employ approximately 4,000 associates worldwide and sell our products in more than 110 countries.

Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute "forward looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements represent Venator's expectations or beliefs concerning future events, and it is possible that the expected results described in this press release will not be achieved. These forward looking statements are subject to risks, uncertainties and other factors, many of which are outside of Venator's control, that could cause actual results to differ materially from the results discussed in the forward looking statements, including the impacts and duration of the global outbreak of the Coronavirus Disease 2019 pandemic on the global economy and all aspects of our business, including our employees, customers, suppliers, partners, results of operations, financial condition and liquidity, global economic conditions, our ability to maintain sufficient working capital, our ability to access capital markets on favorable terms, changes to our plans or strategies due to any changes to our Board or management following any significant change in ownership of a controlling interest in our shares, our ability to transfer technology and manufacturing capacity from our Pori, Finland manufacturing facility to other sites in our manufacturing network, the costs associated with such transfer and the closure of our Pori facility, our ability to realize financial and operational benefits from our business improvement plans and initiatives, impacts on TiO₂ markets and the broader global economy from the imposition of tariffs by the U.S. and other countries, changes in raw material and energy prices, or interruptions in raw materials and energy, industry production capacity and operating rates, the supply demand balance for our products and that of competing products, pricing pressures, technological developments, legal claims by or against us, changes in government regulations, including increased manufacturing, labeling and waste disposal regulations and the classification of TiO₂ as a carcinogen in the EU, geopolitical events, cyberattacks and public health crises such as coronavirus.

Any forward looking statement speaks only as of the date on which it is made, and, except as required by law, Venator does not undertake any obligation to update or revise any forward looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Venator to predict all such factors. When considering these forward looking statements, you should keep in mind the risk factors and other cautionary statements in Venator's Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC and in its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The risk factors and other factors noted therein could cause its actual results to differ materially from those contained in any forward looking statement.

 

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SOURCE Venator Materials PLC

FAQ

What is the status of production at Venator's Lake Charles facility?

Production has resumed and is expected to be fully operational by October 1 after Hurricane Laura caused temporary shutdowns.

What is the estimated financial impact of the production outage for Venator?

The EBITDA impact is projected to be up to $10 million in the third quarter.

What is the latest update on SK Capital's acquisition of Huntsman's stake in Venator?

The acquisition is progressing with prior approval from the board, and is expected to close near year-end.

Where is Venator's titanium dioxide production facility located?

The facility is located in Lake Charles, Louisiana.