Tronox

Last updated
Tronox Limited
Type Public company
NYSE:  TROX (Class A)
Russell 2000 Component
Industry Mining; chemical manufacturing
Founded2006;16 years ago (2006)
Headquarters Stamford, Connecticut, U.S.
Key people
Jeff Quinn (chief executive officer)

Jean-François Turgeon (executive vice president and chief operating officer)

Timothy C. Carlson (chief financial officer and director)

Contents

ProductsTitanium products; titanium dioxide pigment
Revenue$2.7 billion (2020)
$995 million (2020)
Number of employees
~7,000 (2021)
Website www.tronox.com

Tronox Limited is an American worldwide chemical company involved in the titanium products industry with approximately 7,000 employees. Following its acquisition of the mineral sands business formerly belonging to South Africa's Exxaro Resources, Tronox is the largest fully integrated seller and marketer of titanium dioxide (Ti O 2) pigment, which provides brightness to applications such as coatings, plastics and paper. Tronox also sells titanium ore – the main feedstock of titanium dioxide - and zircon directly to customers.

Tronox is the third-largest titanium feedstock producer, with approximately 10% of global titanium ore production; and the second-largest producer of zircon, with approximately 20% of global production. The company also has an electrolytic and speciality chemicals business that services the paper and battery industries. Formerly a part of the Kerr-McGee Chemical Corporation and based in Oklahoma City since it was spun off from its parent in 2005, the company announced in June 2012 that it was moving its headquarters to Stamford, Connecticut. [1] [2] [3]

The company was spun off in part to offload its parent company Kerr-McGee's legacy of generations of environmental dumping of toxic waste across 22 states. According to one report, "Kerr-McGee, rather than pay for the environmental mess it created, decided to shift the liabilities between 2002 and 2006 into Tronox. Kerr-McGee, meanwhile, kept its valuable oil and gas assets." [4] Tronox did not reveal the massive hidden liabilities to investors, and after they became known, Tronox dropped to a penny stock in 2009. In response, shareholders sued Anadarko Petroleum (successor to Kerr-McGee) for keeping the scope of the environmental disaster a secret. In addition the US federal government sued Anadarko to pay for the cleanup, and in April 2014 settled on the largest environmental contamination settlement in American history, over $5 billion. [4]

History

The company went public in 2005, when Oklahoma City-based Kerr-McGee, which had previously owned the company entirely, issued shares via an initial public offering on November 21, 2005. It became an independent company in March 2006. [5] [6]

In the first quarter of 2006, Tronox replaced Meade Instruments on the S&P SmallCap 600 index, when Kerr-McGee distributed the rest of its stock in Tronox under its former NYSE symbol TRX.B, a class B security. TRX.B started regular-way trading on March 31, 2006.

In 2008, the company's stock price declined significantly, and both classes of stock became penny stocks.

In September 2008, the company's stock moved from the NYSE to OTC.

On 14 January 2009, Tronox filed Chapter 11 bankruptcy. [7] It specified that this action did not include the company's non-USA operations. [8]

In 2009, shareholders of Tronox sued Anadarko Petroleum (successor to Kerr-McGee) for having misled investors about the large environmental and other debts Tronox would inherit from its parent corporation. [9] [10] [11] [12] The environmental pollution included polluting Lake Mead in Nevada with rocket fuel, leaving behind radioactive waste piles throughout the territory of the Navajo Nation and dumping carcinogenic creosote in communities throughout the East, Midwest and South at its wood-treating facilities. [4]

In 2009, the Huntsman Corporation announced it would buy certain of Tronox's assets, such as its factories. In late 2009, Tronox terminated this deal. [13] [14]

Tronox emerged from Chapter 11 bankruptcy on February 14, 2011.

Tom Casey became CEO in October 2011. [15]

On June 15, 2012, Tronox announced that it had completed the acquisition of Exxaro Mineral Sands and combined both entities under Tronox Limited, an Australian holding company. Describing the benefits of the combination, Tronox Limited CEO Tom Casey said, "We now have the ability to sell into a lucrative titanium feedstock market while assuring our titanium dioxide customers that we have the supply to deliver quality products at reasonable prices." [16]

In April 2014, the federal government reached a $5 billion settlement with Anadarko (successor to Kerr-McGee) in the largest environmental contamination case in American history. [4] According to one report, "Kerr-McGee, rather than pay for the environmental mess it created, decided to shift the liabilities between 2002 and 2006 into Tronox. Kerr-McGee, meanwhile, kept its valuable oil and gas assets." The cost to clean up the mess inherited by Tronox from Kerr-McGee was estimated by the courts to be over $5 billion. [4] There are contaminated sites in 22 states and the Navajo Nation. "Among the dozens of locations targeted for cleanup under the settlement is a former chemical manufacturing site in Nevada that has led to contamination in Lake Mead, abandoned uranium mines in and around the Navajo Nation, and a Superfund site in Gloucester, N.J., polluted by thorium." [4]

On 10 April 2019, Tronox acquired the Saudi Arabian titanium dioxide pigment manufacturer Cristal Global. [17]

Locations

Global headquarters
Mineral sands operations
Pigment productions
Electrolyic operations

Kerr-McGee spin-off

Kerr-McGee spun off its chemical business circa 2005-2006 after demands were made by corporate raider and major Kerr-McGee shareholder Carl Icahn. [18]

Among other things, Tronox inherited several radioactive waste sites from Kerr-McGee. These include the Cimarron Fuel Fabrication Site and the Rare Earths Facility. They are, as of 2014, still undergoing cleanup. [19] [20]

It also inherited the Henderson, Nevada "BMI" site. This site had supplied Magnesium and other chemicals beginning around World War II. It eventually leaked perchlorate (used in rocket fuel) into the water table, which subsequently contaminated Lake Mead and the Colorado River, which supply water to millions of people. [21] [22]

Exiting bankruptcy in February 2011, Tronox's Chapter 11 plan created the Anadarko litigation trust to pursue Tronox's lawsuit against Anadarko and Kerr-McGee. Tronox has transferred an 88% share of its interest in the lawsuit to the federal government. [23]

See also

Related Research Articles

Ilmenite Titanium-iron oxide mineral

Ilmenite is a titanium-iron oxide mineral with the idealized formula FeTiO
3
. It is a weakly magnetic black or steel-gray solid. From a commercial perspective, ilmenite is the most important ore of titanium. Ilmenite is the main source of titanium dioxide, which is used in paints, printing inks, fabrics, plastics, paper, sunscreen, food and cosmetics.

Titanium dioxide Chemical compound

Titanium dioxide, also known as titanium(IV) oxide or titania, is the inorganic compound with the chemical formula TiO
2
. When used as a pigment, it is called titanium white, Pigment White 6 (PW6), or CI 77891. It is a white, water-insoluble solid, although mineral forms can appear black. As a pigment, it has a wide range of applications, including paint, sunscreen, and food coloring. When used as a food coloring, it has E number E171. World production in 2014 exceeded 9 million tonnes. It has been estimated that titanium dioxide is used in two-thirds of all pigments, and pigments based on the oxide have been valued at $13.2 billion.

Kerr-McGee American energy company

The Kerr-McGee Corporation, founded in 1929, was an American energy company involved in oil exploration, production of crude oil, natural gas, perchlorate and uranium mining and milling in various countries. On June 23, 2006, Anadarko Petroleum acquired Kerr-McGee in an all-cash transaction totaling $16.5 billion plus $2.6 billion in debt and all operations moved from their base in Oklahoma, United States.

Occidental Petroleum American oil company

Occidental Petroleum Corporation is an American company engaged in hydrocarbon exploration in the United States, the Middle East, and Colombia as well as petrochemical manufacturing in the United States, Canada, and Chile. It is organized in Delaware and headquartered in Houston. The company is ranked 167th on the Fortune 500 and 669th on the Forbes Global 2000.

Glauconite Iron potassium phyllosilicate (mica group) mineral of green color formed in situ under reducing conditions

Glauconite is an iron potassium phyllosilicate mineral of characteristic green color which is very friable and has very low weathering resistance.

Huntsman Corporation is an American multinational manufacturer and marketer of chemical products for consumers and industrial customers. Huntsman manufactures assorted polyurethanes, performance products, and adhesives for customers like BMW, GE, Chevron, Procter & Gamble, Unilever and Walkaroo.With global headquarters in The Woodlands, Texas, it operates more than 70 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 9,000 associates across four business divisions. Huntsman Corporation had 2020 revenues of approximately $6 billion.

Anadarko Petroleum American energy company

Anadarko Petroleum Corporation was a company engaged in hydrocarbon exploration. It was organized in Delaware and headquartered in two skyscrapers in The Woodlands, Texas: the Allison Tower and the Hackett Tower, both named after former CEOs of the company. In 2019, the company was acquired by Occidental Petroleum.

The Tiwest Joint Venture was a joint venture between Tronox Western Australia Pty Ltd and subsidiaries of Exxaro Australia Sands Pty Ltd. The Tiwest Joint Venture was a mining and processing company, established in 1988, to extract ilmenite, rutile, leucoxene and zircon from a mineral sands deposit at Cooljarloo, 14 km north of Cataby, Western Australia. As of June 2012, the joint venture was formally dissolved, when Tronox acquired the mineral-sands-related divisions of Exxaro outright.

As You Sow is a non-profit foundation chartered to promote corporate social responsibility through shareholder advocacy, coalition building, and legal strategies.

Wellesley is a locality in the Bunbury region of Western Australia, about 10 km north-east of Australind. Its local government area is the Shire of Harvey. It is bordered on the south and east by the Brunswick River and the Wellesley River. The main feature of the locality is the Kemerton Industrial Park.

Kenmare Resources

Kenmare Resources plc is a mining company headquartered in Dublin, Republic of Ireland. It is listed on the London Stock Exchange and Euronext Dublin under the ticker KMR. Kenmare is one of the world's largest mineral sands producers and the Company owns and operates the Moma Titanium Minerals mine. Moma is one of the world's largest titanium minerals deposits, located 160 km from the city of Nampula in Mozambique, Africa.

Cristal Global is the world's second-largest producer of titanium dioxide and a leading producer of titanium chemicals. It was formed when The National Titanium Dioxide Company Ltd. combined with Millennium Chemicals. The headquarters are in Jeddah, Saudi Arabia. It is a significant shareholder in Bemax, the world’s 5th largest TiO2 feedstock producer.

The Cimarron Fuel Fabrication Site was a nuclear fuel production facility located by the Cimarron River near Cimarron City, Oklahoma. It was operated by Kerr-McGee Corporation (KMC) from 1965 to 1975.

Rare Earths Facility

The Rare Earths Facility was a production plant for various chemicals and metals including thorium, uranium, and radium. It was located in West Chicago, Illinois, USA.

American Potash and Chemical Company was a large chemical manufacturer in the United States from the 1920s through the 1960s. It produced various chemicals for US industry and the US military. It was bought by Kerr-McGee in 1967, which reformed it into the Kerr-McGee Chemical Corporation (KMCC) around 1970.

Kerala Minerals and Metals Ltd is an integrated titanium dioxide manufacturing public sector undertaking in Kollam, Kerala, India. Its operations comprise mining, mineral separation, synthetic rutile and pigment-production plants. Apart from producing rutile-grade titanium dioxide pigment for various types of industries, it also produces other products like ilmenite, rutile, zircon, sillimanite, synthetic rutile etc. It is one of the best performing Public Sector Units in India.

Krebs Pigments and Chemical Company was founded in 1902 by Henrik J. Krebs and was a manufacturer of lithopone and titanium dioxide.

British Titan Products was the manufacturer of TIOXIDE a brand of brilliantly white yet opaque pigment and whitening agent made from Titanium dioxide. British Titan Products was initially organised to replace titanium dioxide supplies that British paint manufacturers imported from Germany. This British industry was established as a joint venture in 1934 by two of the world's major mining and chemical businesses in conjunction with a major industrial consumer and a distribution business.

Sachtleben Chemie

Sachtleben Chemie is a chemicals producer, with its primary focus on the production of white pigments, fillers and extenders. The company employs some 2,200 persons and achieves annual sales of around 820 million euros (2012). Sachtleben has been a member of the multinational Venator group since 2017. The company's corporate history reaches back over 130 years. Sachtleben produces particles using titanium dioxide, zinc sulfide and barium sulfate as the chemical basis, and markets these products worldwide. The principal applications for Sachtleben products include man-made fibers, paints and other coatings, plastics, and paper. Sachtleben also supplies special particles to the foodstuffs, pharmaceuticals and cosmetics industries, and has interests in the fields of chromatography, nanotechnology, catalysis, and the production of building materials. The company leads the world in special titanium dioxide grades for printing inks and for the cosmetics, pharmaceuticals and food industries. The production facilities at all three locations apply the sophisticated sulfate-route process.

Crimean Titan

Crimea TITAN is the largest manufacturer of titanium dioxide pigment in Eastern Europe. It is located in Armyansk, Crimea.

References

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