Technical Innovation—Key to Better Sales

 

Titanium dioxide demands hit a new record low in 2013, leading to a series of price decline. Anatase titanium dioxide--TIKON’s main product, witnesses a slump in price from 17,000 yuan/mt to 12,000 yuan/mt until end of September. Though Xu does not believe the prices will recover within the last month in 2013, she says there is still chance for better situation in next year.

 

“We have met lowest selling prices since 1198,”Xu says. “Better market situation is a common wish of domestic manufacturers.”

 

However, it is always easier said than done. Analyses point out that market recover needs time and the prices will not back to the top in coming two or three years, but Xu says she is not that worry. “There are always good prices, the key point is whether we have cost-effective products to meet demands,” Xu adds.

 

For years, TIKON dedicates in manufacturing top-quality products all along, with the help of its talent’s strategy, by recruiting & creating a strong technical team which is consisted by more than 100 technicians, professor-level engineers and one top-level expert of white pigments, including the Vice Chairman of National Titanium Dioxide Industry Expert Team.

 

Thanks to the excellent quality and perfect service, TIKON titanium dioxide has been distributed to not only the domestic developed markets such as Yangtze River Delta and Zhujiang River Delta, but also top foreign markets, such as Europe and America and competed with world famous brands, won wide approval and trust.

 

“The most important task for Chinese manufacturers is to stick to technical innovation and advance product differentiation,” Xu says.

 

Domestic manufacturers never give up developing improved producing technique, and the most heated topic in recent years must be chlorination process—a more cost-effective and eco-friendly producing method which is already introduced to mainland China but not yet popularized. Some hold that mass production of chlorination process titanium dioxide will make current over-capacity problem more severe, but Xu does not think so.

 

“Chlorination process is a much advanced technology in the global range, and there is still long road for Chinese manufacturers to fully digest and absorb it before mass production,” Xu says.

 

It is reported that five domestic manufacturers are now developing or planning chlorination process producing line, aiming to reach a total capacity of 560,000 metric tons.

 

Distributing Channel—Joint between Upper-lower Streams

 

As a frequently-used inorganic pigment, titanium dioxide is widely used in coatings, ink, plastics, paper making, chemical fiber and many other industries. However, since downstream users, bothered by severe competition and lowering growth rate, decide to cut expenses on raw materials, this year’s demands for titanium dioxide shrink sharply.

 

“This indicates a clean-out for titanium dioxide market, in which the small businesses may be weeded out while the giants may grasp the opportunity and continue to grow,” Xu says.

 

For both manufacturers and distributors, now comes the very time to pull together and ensure stable supplies and qualities to maintain the downstream markets.

 

Distributors, acting as link between manufacturers and consumers and efficient exploiter of downtown markets, play a vital role in the whole trading chain. According to Xu, distributors are supposed to meet diverse demands with various products from different manufacturers and thus satisfy the users to the full extend.

 

“In titanium dioxide industry, distributors make a beneficial supplement to user experience since few manufacturers can satisfy such different needs from so many industries involving titanium dioxide,” Xu adds. “Good distributors are sure to be great help for the inevitable differentiation of titanium dioxide products.”

 

Green Production—Responsibility of the Whole Industry

 

In recent years, China has seen a rapid growth in chemical industry but manufacturers and governors have long been bothered by consequent heavy pollution.

 

A leading titanium dioxide manufacturer, based in Southwest China’s Sichuan province, gets delisted this September after involving in water pollution scandal, and this is not the only story. For long time, chemical industries stay on National Environmental Protection Bureau’s blacklist for high energy consumption and severe pollution.

 

With the development of policies on green production, domestic manufacturers are forced to face higher sewage disposal cost while the selling prices remain, which set off alarm bells for the whole industry that a green production revolution is looming ahead.

 

“Environmental protection is one of the heavy responsibilities of any chemical enterprise, and energy-saving and emission-reducing are two effective ways for sustainable development,” Xu says. “It is worth efforts and funds.”

 

As a leading manufacturer in titanium dioxide industry, TIKON always value its green responsibility. In 2005, TIKON spent heavily to advance energy conservation and emission reduction while expanding production. In 2011, to follow the Twelfth Five-year Plan, TIKON actively cooperated with the municipal government and signed a statement to ensure its energy-saving target for that year.

 

Sticking to the company spirit of “great virtue and the highest good, entrepreneurship and innovation, cooperation and honesty, excellence pursuit”, TIKON goes steadily on its way of becoming international top titanium dioxide enterprise and leading the development tide of the industry. With solid foundation in both domestic and overseas markets and ever-improving comprehensive strength, TIKON is sure to go further and smoother towards its goals.