The manufacturing and commercial company Velta (Ukraine) signed a 5-year contract with an international trader Traxys Group (USA) for the supply of ilmenite (raw materials for the production of titanium and derivatives) worth $ 100 million, media reported. The final consumer of raw materials under the terms of the transaction will be The Chemours Company (part of DuPont).
The reason for the long-term contract was the growing demand for white pigment in the US market, it is created on the basis of titanium dioxide and is used in the manufacture of coatings and plastics.
Velta has been operating on the American market for seven years. “Given that North America is one of the most sustainable and fastest growing markets, we have decided to move to a long-term contract that will add stability to the company. – I am sure the general director of Velta Andrey Brodsky. “The main competitive advantage of Velta is that we are a producer of high-quality high-titanium raw materials, which today are scarce in the world and are very much in demand in the US market.”
“Titanium dioxide pigment (TiO2) is the core business of our group. We are fully satisfied with our professional and reliable partner, such as Velta,” said Eli Skornitsky, Head of Industrial Metals at Traxys.
The final consumer of the raw materials under the contract is Chemours, one of the world’s largest manufacturers of titanium dioxide. Under the Ti-Pure ™ brand, the chemical giant is creating high-quality titanium dioxide for the markets for paint, plastics and laminates. The company’s annual sales exceed $ 6.5 billion.
Since 2012, Velta has been engaged in the extraction and processing of titanium raw materials at the Birzulevsky deposit (Kirovograd region). The company also holds a license for the industrial development of the Lekarevskoye field of ilmenite.