Chemours Maintains $475 Million-$525 Million Capex Guidance for 2018

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Chemours Company (Chemours) (NYSE: CC) (Wilmington, Delaware) reported earlier this month that its first-quarter earnings were nearly double that of a year earlier, with its Fluoroproducts products, Titanium Technologies and Chemical Solutions segments all seeing an increase in sales. The company, which was spun off from DuPont in 2015, expects capital expenditures for 2018 to be within the range of $475 million to $525 million. Industrial Info is tracking more than $624 million in project activity by Chemours, including more than $544 million for capital projects.

Net income for the just-ended first quarter was $297 million, up 98% from net income in first-quarter 2017, the company reported on May 3. Net sales totaled $1.7 billion, up 20%.

The improvements were primarily driven by higher prices for titanium dioxide (TiO2) products, as well as sales volume growth in all three business segments. First-quarter sales by the Titanium Technologies segment were $854 million, a 32% increase versus the prior-year quarter, reflecting strong growth in key market segments, the company reported. Chemours touts itself as a global leader in TiO2 production, with a production capacity of 1.25 million metric tons per year across four plants.

The Fluoroproducts products segment, which produces refrigerants and other items, reported a 12% increase in sales revenue, while the Chemical Solutions segment reported a 4% increase.

Construction is already underway on two of the largest Chemours projects being tracked by Industrial Info. In Ingleside, Texas, work is expected to wrap up late this year on the Corpus Christi HFO-1234YF Hydrofluoroolefin Unit Addition. A new Opteon YF process unit is being built to triple the capacity of the facility, which produces environmentally friendly refrigerants that will be soon required for all new European automobiles and phased in for U.S. automobiles as well. KBR Incorporated (NYSE:KBR) (Houston, Texas) is the engineering, procurement and construction provider. For more information, see Industrial Info's project report.

In Newark, Delaware, construction continues on a research and development center on the University of Delaware's Science, Technology and Advanced Research (STAR) campus. The 312,000-square-foot facility will be used for the research and development of titanium, Fluoropolymers and other chemical solutions. Completion is expected in late 2019. For more information, see Industrial Info's project report.

On May 9, Chemours announced a commitment to spend more than $100 million to address air and water emissions issues at its Fayetteville Works plant in North Carolina. The commitment includes investments in state-of-the-art emission control technology such as a thermal oxidizer and a thermolysis reactor as well as other technology that is expected to result in a 99% reduction of air and water emissions of C3 dimer acid (also referred to as GenX) and other PFAS (per- and polyfluoroalkyl substances) compounds, the company said. The announcement follows an investigation by the North Carolina departments of Environmental Quality and Health and Human Services into the presence of GenX in the Cape Fear River. For more information on the Fayetteville Works facility, see Industrial Info's plant profile.

In Durango, Mexico, construction of a Chemours sodium cyanide plant was halted earlier this year as a result of a complaint filed against several local and federal authorities involved in the permitting process of the facility, the company reported. According to news accounts, construction stopped in March following a clash between opponents of the facility and police. The plant would produce 65,000 tons per year of sodium cyanide to be used by the mining industry. For more information, see Industrial Info's project report.

"We are working with the community and our stakeholders to address any additional questions they may have regarding our operations," said Chief Executive Officer Mark Vergnano during the company's earnings conference call. "We are committed to working with all stakeholders and believe that our investment in Laguna not only benefits the local community, but also serves the growing market need for our products in Mexico."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.