Plant closures: Tronox to close pigment plant in China; Alpek to shut down PET recycling plant in US
US firm Tronox Holdings, an integrated manufacturer of titanium dioxide pigment, has announced its intent to permanently close its 46,000 tonnes/year TiO2 plant in Fuzhou, China. It states that the closure reflects ongoing weak Chinese domestic demand and increasing costs, particularly for sulphur, a key raw material, plus continued excess Chinese TiO2 production.
The operating site currently employs approximately 550 impacted permanent staff. Given the company’s globally diversified manufacturing footprint, Tronox also says it does not expect that this action will impact its ability to serve customers.
Tronox estimates incurring restructuring and other related charges, primarily in the fourth quarter 2025, of approximately US$60-80 million, including US$35-45 million of non-cash write-downs related to the shutdown. Cost savings are estimated to exceed US$15 million annually.
John D. Romano, CEO, commented, “Unfortunately, the prolonged market downturn combined with rising production costs eroded the financial and commercial viability of continued operations. The closure was also necessitated by Chinese competitors’ continued excess production and unsustainable pricing.”
For the fourth quarter 2025, Tronox’s revenue is expected to be US$730 million, an increase of 8% compared to the prior year or 4% compared to the prior quarter. Expected revenue of US$730 million is comprised of US$577 million from TiO2, US$78 million from zircon, and US$75 million from other products.
In other news, Alpek Polyester USA, US-based PET recycler and business unit of Mexican firm Alpek S.A.B. de C.V., has said it will close its facility in Pennsylvania.
The closure of the 270,000-sq-ft plant, located in Reading, will affect 100 employees. The facility is considered the largest standalone bottle-to-bottle recycling plant in the Americas.
The Reading facility was built by CarbonLite Holdings LLC before it was acquired by Dak Americas LLC, which is now Alpek Polyester USA, for US$96 million when CarbonLite declared Chapter 11 bankruptcy during the early stages of commissioning. Alpek has operated the plant since 2021.
Last year, Alpek also closed another PET recycling plant in Cedar Creek, North Carolina.
Alpek operates 34 plants across nine countries and produces virgin resins such as PET, EPS, polypropylene (PP) and purified terephthalic acid (PTA), along with rPET pellets and flake. The company operates seven facilities in the US, five of which produce recycled resins.
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