News Release
Oklahoma City, Sept. 19, 2006 - Tronox Incorporated (NYSE: TRX, TRX.B) announced that the Tiwest synthetic rutile plant in Chandala, Western Australia, restarted production on Aug. 30, and its daily production has returned to pre-shutdown levels.
Tiwest, a 50/50 joint venture between Tronox and Ticor Pty Ltd., a subsidiary of Kumba Resources Limited, is one of the world's largest fully integrated, from mining to finished product, titanium dioxide projects. The Chandala facility, which provides feedstock to several of Tronox's titanium dioxide pigment plants, was temporarily shut down in July for maintenance that had been scheduled for 2007, but was accelerated due to a hot spot that developed prematurely in the kiln. The 2007 maintenance will be reduced as a result of maintenance completed during the recent shutdown. This year's 46-day unplanned shutdown combined with estimated days needed to complete the maintenance in 2007 is similar in total days to the maintenance that was originally scheduled for 2007.
Production at Tronox's pigment plants was not impacted by the Chandala shutdown, as feedstock requirements were fulfilled with Chandala inventory and ore acquired in the market.
"The Chandala maintenance project was completed on time and within our cost projections as a result of thorough planning and execution by our talented and committed Tiwest employees," said Tom Adams, Tronox chairman and chief executive officer. "To optimize our assets during the shutdown, we completed a portion of the maintenance that was planned for 2007, and adopted a revised kiln maintenance strategy that will reduce the time and cost of our planned maintenance next year and in the future. As previously estimated, we expect the temporary shutdown's total impact on operating income to be in the range of approximately $5 million to $6 million, with approximately 60% in the third quarter and the remainder in the fourth quarter. Based on the work that has just been completed, the 2007 costs to finalize the kiln maintenance will now be less than $5 million."
Savannah, Ga., Plant Update
Following strong manufacturing performance in July and August, Tronox's Savannah, Ga., titanium dioxide pigment plant was impacted by a disruption of nitrogen supply from a third-party supplier that resulted in decreased production during September. The company expects the total impact of the disruption to be in the range of approximately $1 million to $2 million in the third quarter. On Saturday, Sept. 16, the third-party supplier resumed the supply of nitrogen, and the pigment plant currently is ramping up to full production.
Headquartered in Oklahoma City, Tronox is the world's third-largest producer and marketer of titanium dioxide pigment, with an annual production capacity of 624,000 tonnes. Titanium dioxide pigment is an inorganic white pigment used in paint, coatings, plastics, paper and many other everyday products. The company's five pigment plants, which are located in the United States, Australia, Germany and the Netherlands, supply high-performance products to more than 1,100 customers in approximately 100 countries. In addition, Tronox produces electrolytic products, including sodium chlorate, electrolytic manganese dioxide, boron trichloride, elemental boron and lithium manganese oxide. For information on Tronox, visit www.tronox.com.
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Forward-Looking Statements: Some information in this news release regarding the company's or management's intentions, beliefs or expectations, or that otherwise speak to future events, are "forward-looking statements" within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include those statements preceded by, followed by or that otherwise include the words "believes," "will," "expects," "anticipates," "intends," "estimates," "projects," "target," "budget," "goal," "plans," "objective," "outlook," "should," or similar words. Future results and developments discussed in these statements may be affected by numerous factors and risks, such as the accuracy of the assumptions that underlie the statements, the market value of Tronox's products, demand for consumer products for which Tronox's businesses supply raw materials, the financial resources of competitors, changes in laws and regulations, the ability to respond to challenges in international markets, including changes in currency exchange rates, political or economic conditions in areas where Tronox operates, trade and regulatory matters, general economic conditions, and other factors and risks identified in the Risk Factors Section of the company's Form 10-K and Form 10-Q, as filed with the U.S. Securities and Exchange Commission (SEC), and other SEC filings. Actual results and developments may differ materially from those expressed or implied in this news release. The company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made. Investors are urged to consider closely the disclosures and risk factors in Tronox's Annual Report available on Tronox's website, www.tronox.com. This also can be obtained from the SEC by calling 1-800-SEC-0330.
| Media Contact: | Robert Gibney Direct: 405-775-5105 E-mail: robert.gibney@tronox.com |
| Investor Contact: | Robert Gibney Direct: 405-775-5105 E-mail: robert.gibney@tronox.com |