US chemical giant DuPont (Wilmington, Delaware; www.dupont.com) has confirmed long-rumoured plans that it is "exploring strategic alternatives" for its titanium dioxide (TiO₂) business. The exit will most likely come as part of a sale or spin-off of the group’s USD 7.2 bn performance chemicals segment, which also includes fluorochemicals, speciality and industrial chemicals. CEO Ellen Kullman said management’s goal is to focus on higher growth, less cyclical products. She did not rule out pursing a separate strategy for each of the businesses.

The market for the white pigment TiO₂, used in coatings and plastics, has been dogged by price volatility as well as overcapacity over an extended period and is considered ripe for consolidation. Though market leader DuPont last year dismissed reports of a dramatically softening market – see Plasteurope.com of 13.07.2012 – a number of companies have either put their business up for sale, or are rumoured to be planning an exit. Other players include Huntsman, Tronox and Kronos of the US, Cristal Global of Saudi Arabia and Ishihara of Japan. Reports say Kronos may be keen to acquire assets and Chinese players have been seen as interested in the TiO₂ market.

In February, US chemical producer Rockwood Holdings (Princeton, New Jersey / USA; www.rocksp.com) bought the remaining 39% stake in TiO₂ producer Sachtleben Chemie (Duisburg / Germany; www.sachtleben.de) from its partner in the joint venture Kemira (Helsinki / Finland; www.kemira.com) to facilitate a sale. After failed attempts to unload the activities separately, or as part of a package with other businesses, Rockwood recently announced exclusive negotiations with competitor Huntsman (The Woodlands, Texas / USA; www.huntsman.com) up to the end of July.

DuPont said its decision to look into alternatives “reflects an ongoing portfolio review to determine how best integrated science can contribute to growth and the optimal mix of businesses.” Earlier this year, the US group sold its performance coatings segment to US-based alternative asset manager Carlyle Group (Washington, DC; www.carlyle.com) for USD 4.9 bn.

As part of an overall re-alignment of business and management responsibilities, DuPont has appointed James C. Collins Jr as senior vice president to oversee the performance polymers and industrial polymers activities, along with the industrial biosciences unit. Collins will be charged with accelerating the integration of the industrial biotechnology business with the advanced materials business, “as demand for renewably sourced materials expands steadily.”