Ad hoc announcement pursuant to Art. 53 LR
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Oct 29, 2018
DKSH and Australian stock listed resources company TNG have signed a term sheet encompassing the full distribution on a global and exclusive basis for TNG's titanium dioxide (TiO2) production. TiO2 is the most used white pigment worldwide.
Media release
Zurich, Switzerland, October 29, 2018 – DKSH's Business Unit Performance Materials, a leading ingredients and specialty chemicals distributor, will provide a full range of Market Expansion Services, including marketing and sales, distribution and logistics as well as technical support for TNG's high purity TiO2 on a life-of-mine basis from its flagship Mount Peake Vanadium-Titanium-Iron Project, located in Australia's Northern Territory. The two companies today signed a term-sheet for a TiO2 capacity up to 150,000 tons per year.
TiO2 is a naturally-occurring oxide of titanium and the most used white pigment in multiple applications, including coatings, plastics, laminated paper and printing inks, as well as fiber products. This pigment is characterized by its opacity, brightness, gloss, tone and under-tone, lightening power (tinting strength), water resistance, durability and abrasiveness.
DKSH will distribute the TiO2 to the coatings industry globally, excluding the Iberian Peninsula and Nordic countries. DKSH has a track record in the distribution of TiO2 and sales are synergic with the existing product offering addressed to the same customer base.
DKSH and TNG have agreed to move towards a Binding Off-take Agreement reflecting the key points set forth in the term sheet.
Dr. Natale Capri, Co-Head Business Unit Performance Materials, DKSH, said: “With our market coverage and long-standing successful track-record in the worldwide distribution of specialty chemicals to the plastics and coatings industry, we are TNG's optimal partner to exclusively market their titanium dioxide pigments. Our customers worldwide will benefit from a reliable and steady supply of high-quality products. We are delighted to team up with TNG and jointly market the products made by their unique process.”
Paul Burton, Managing Director, TNG, commented: “We are very pleased to have the opportunity to work with a company of DKSH's pedigree for our world-class Mount Peake project. This represents another major step forward for TNG and its shareholders. I and my entire team are very much looking forward to the long term and strategic relationship for our titanium dioxide business as well as the potential future growth opportunities this agreement brings.”
For further information, please contact:
DKSH
Till Leisner
Head, Group Investor & Media Relations
Phone +41 44 386 7315
till.leisner@dksh.com
Dominique Nadelhofer
Senior Manager, Group Media Relations
Phone +41 44 386 7228
dominique.nadelhofer@dksh.com
Daniel Hollister
Manager, Group Communications, Performance Materials
Phone +44 20 8879 5500
daniel.hollister@dksh.com
About TNG
TNG is building a world-scale strategic metals business based on its flagship 100%-owned Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory. Located 235km north of Alice Springs, Mount Peake will be a long-life project producing a suite of high-quality, high-purity strategic metals products for global markets including vanadium pentoxide, titanium dioxide and pig iron. The project, which will be a top-10 global producer, has received Major Project Facilitation status from the NT Government.
About DKSH
DKSH is the leading Market Expansion Services provider with a focus on Asia. As the term "Market Expansion Services" suggests, DKSH helps other companies and brands to grow their business in new or existing markets. Publicly listed on the SIX Swiss Exchange since 2012, DKSH is a global company headquartered in Zurich. With 825 business locations in 37 markets – 800 of them in Asia – and 31,970 specialized staff, DKSH generated net sales of CHF 11.0 billion in 2017. DKSH was founded in 1865. With strong Swiss heritage, the company has a long tradition of doing business in and with Asia and is deeply rooted in communities and businesses across Asia Pacific.
DKSH Business Unit Performance Materials is a leading specialty chemicals distributor and provider of Market Expansion Services for performance materials, covering Europe, North America and the whole of Asia. The Business Unit sources, develops, markets and distributes a wide range of specialty chemicals and ingredients for pharmaceutical, personal care, food & beverage as well as various industrial applications. In addition, it creates innovative and cutting-edge concepts and applications in 29 innovation centers located worldwide. With 100 business locations in 31 markets and around 1,010 specialized staff, Business Unit Performance Materials generated net sales of CHF 894.1 million in 2017.