Chemours: Strengths and Weaknesses in an Expanding Industry
The former leader explained Chemours’ key strengths and weaknesses – including its leadership position in the titanium dioxide (TiO2) market.
Chemours’ process technology allows it to produce the material to convert into TiO2 at a lower cost than its competitors. Although the company has taken the lead in TiO2, where it is interested in supporting price or value stabilisation, it does not have that leadership position in some of the other areas of the market, according to the specialist.
Chemours has demonstrated its strength in emerging areas of the fluoroproducts segment, with this segment of the business comprising a mix of cutting-edge products with “really good market pull” and some older products, such as Teflon, which made money once upon a time but continues to erode.
Among its strengths, the specialist noted, is a reputation for the highest and most consistent quality: “Chemours’ differentiations are [the] quality and reliability of its operations.”
The other area that is seeing good growth is foam blowing agents, as fluoro gases have interesting properties in terms of their use in producing primarily polyurethane foams with better end characteristics, for use in insulation-type applications.
Chemours’ cyanide business is attractive, and it has established itself as a reliable supplier of this chemical, which is essential for manufacturing gold. Meanwhile, with gold production in the Americas continuing to grow and the price of gold reflecting global uncertainty, this part of the business generates good margins for Chemours.
As more chemical companies are being held privately, personally or by private equity firms, they tend to operate with a long-term focus on value generation. With Chemours at risk of being short-term focused, can it continue to focus on what is needed to succeed in these markets?
In this interview, Third Bridge Forum explored how the company can continue to improve its business processes.
To access all the human insights from Third Bridge’s Chemours – Business Update Interview, click below to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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