LB Group in China to Acquire UK Venator Titanium Dioxide Plant

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LB Group, the world’s leading supplier of titanium dioxide, announced its plan to acquire a British factory previously owned by the now-bankrupt Venator Materials UK. This move signifies a key step in the company’s international growth strategy.

The company will invest $69.9 million to purchase the facility located in Greatham, Hampshire, along with associated intellectual property. Additionally, around $14.2 million will cover transaction taxes and fees. Some staff members are expected to stay on during the transition.

Both Venator Materials UK and its parent company, Venator, are currently under bankruptcy protection following defaults. As a result, the factory’s operations are gradually winding down, according to LB’s statement.

Earlier today, shares of LB surged up to 4 percent but ultimately closed up 0.4 percent at CNY19.52 (about $2.74) each, even as the Shenzhen Composite Index declined 2.8 percent.

As of August 31, the net book value of the mortgaged assets—after depreciation and provisions—was approximately $195 million, based on data from Venator Materials UK.

This acquisition is expected to enhance LB’s titanium dioxide manufacturing capabilities and diversify its product offerings, allowing it to better serve global customers. Once the deal is finalized, the company plans to integrate the assets across production, supply, and sales channels to streamline costs and boost capacity utilization.

The transaction is contingent upon approval from regulatory authorities in both China and the UK.

Venator ranks among the top four titanium dioxide producers in Europe and the U.S. Its UK plant is the only facility using the more efficient and environmentally friendly chloride process technology. The plant has a capacity of 150,000 tons of titanium dioxide annually, LB revealed.

LB’s own annual production capacity totals 1.5 million tons, as disclosed in its first-half earnings report released in August.

In addition, LB announced plans to invest $50 million to establish a subsidiary in the UK and another $5 million to start an operation in Malaysia, aiming to expand its international footprint and offer improved products and services to overseas clients.