LB Group(SZ:002601) Chan Ye Xin Xi Wang·2025-08-15 01:15Core Insights - The chlorination method for titanium dioxide (TiO₂) production is gaining traction in China due to its lower environmental impact and higher product quality compared to the sulfate method, aligning with green manufacturing requirements [1][4][24] - The industry is experiencing both opportunities and challenges, driven by policy support, market demand shifts, and technological advancements [6][10][28] Industry Overview - Chlorination method titanium dioxide is produced from titanium concentrate through chlorination and oxidation processes, offering advantages such as reduced waste and continuous production [2][24] - The chlorination method is particularly suitable for high-end applications like automotive paints and plastics [2] Opportunities - Policy Support and Environmental Drivers: The Chinese government is restricting sulfate method production while promoting chlorination technology, with additional tax incentives and subsidies for green transitions [6][10] - Market Demand Upgrade: Despite a downturn in traditional construction coatings due to real estate challenges, high-end sectors like renewable energy and automotive coatings are seeing rapid growth, with chlorination products expected to capture 65% of the high-end market by 2030 [7][30] - Technological Progress: Domestic companies have made significant breakthroughs in key technologies, reducing catalyst costs by 40% and increasing production capacity [9][24] Challenges - Limited Technology Sources: The chlorination method's technology is primarily held by international giants, posing a challenge for domestic companies seeking to scale up production [10] - Raw Material Compatibility and Environmental Management: The requirement for high-purity raw materials and the complexity of waste management present significant hurdles for new projects [11][14] - High Capital Investment: The investment required for chlorination production lines is significantly higher than for sulfate methods, creating barriers for smaller companies [13] - Dependence on Skilled Labor: The production process requires highly skilled personnel, which is currently lacking in the domestic market [14] Industry Structure - The chlorination titanium dioxide industry in China is characterized by a "one strong, many strong" competitive landscape, with leading companies like Longbai Group and CITIC Titanium Industry dominating the market [26] - As of 2024, Longbai Group holds a 61% market share in chlorination production, with plans for further capacity expansion [26] Development Trends - The industry is expected to shift towards high-end, green, and globalized production, with chlorination methods increasingly replacing sulfate methods [28] - The demand for high-end products in sectors like renewable energy and electronics is projected to grow, with chlorination products becoming more competitive [30][31] - Companies are expanding overseas to mitigate trade barriers and enhance their global competitiveness [31]