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Low Costs Position DuPont Titanium Technologies for Growth When Global Economy Recovers

Posted on: Wednesday, 2 September 2009, 10:01 CDT

WILMINGTON, Del., Sept. 2 /PRNewswire-FirstCall/ -- "With its modern titanium dioxide (TiO2) manufacturing base and streamlined global sales and service organization, DuPont Titanium Technologies is poised to serve our customers well when the global recession subsides and growth resumes," said Richard C. Olson, vice president and general manager -- DuPont Titanium Technologies. Olson made the comments during a DuPont (NYSE: DD) Investors' Business Review Series teleconference.

"The mission of DuPont Titanium Technologies is to grow earnings and cash by optimizing our position as the global low-cost producer of titanium dioxide through accelerated growth in emerging markets and by developing and introducing innovative, new products," Olson said.

He said improvements in the first half of 2009 compared with the first half of 2008 provide evidence of the business' efforts to improve operating leverage, including:

• 28 percent reduction in working capital;
• 15 percent reduction in plant fixed costs;
• 17 percent reduction in SARM (sales and marketing, administrative costs, research and management expenses), and;
• 57 percent reduction in capital expenditure.
  

Growth in emerging markets is expected to account for between 70 and 80 percent of future growth in the titanium dioxide industry.

"Twenty years ago, 60 percent of our sales were in North America -- primarily the United States," said Olson. "Today, we sell 75 percent of our product outside the United States, especially in Asia and Latin America."

Olson also pointed to the role of product innovation in the growth of DuPont Titanium Technologies, saying that 35 percent of the business' revenue is generated by products introduced in the last five years. For example, DuPont(TM) Ti-Pure(R) R-902+, introduced in 2006 for use in the coatings industry, has been accepted by customers enthusiastically because of its excellent performance and energy saving characteristics.

In 2005, DuPont announced plans to build a new titanium dioxide plant at Dongying in China. Construction of the plant, representing a total investment of approximately $1 billion, will begin once the Chinese government issues a business license. The plant is expected to begin production three to four years later.

DuPont Titanium Technologies is the world's largest manufacturer of titanium dioxide, serving customers globally in the coatings, paper and plastics industries. The company operates plants at DeLisle, Miss.; New Johnsonville, Tenn.; Edge Moor, Del.; Altamira, Mexico; and Kuan Yin, Taiwan; all of which use the chloride manufacturing process. The company also operates a titanium minerals mine in Starke, Fla. Technical service centers are located in Mexico City, Mexico; Mechelen, Belgium; Kuan Yin, Taiwan; Ulsan, Korea; Shanghai, China; and Wilmington, Del., to serve the Latin American, European, Middle Eastern, Asian and North American markets.

DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.

Forward-Looking Statements: This news release contains forward-looking statements based on management's current expectations, estimates and projections. The company does not undertake to update any forward-looking statements as a result of future developments or new information. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in DuPont's filings with the Securities and Exchange Commission, particularly its latest annual report on Form 10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions of countries in which the company does business; competitive pressures; successful integration of structural changes, including acquisitions, divestitures and alliances; research and development of new products, including regulatory approval and market acceptance, and seasonality of sales of agricultural products.

The DuPont Oval Logo, DuPont(TM), The miracles of science(TM) and Ti-Pure(R) are registered trademarks or trademarks of DuPont or its affiliates.

SOURCE DuPont

Source: PR Newswire

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