Argex Titanium Inc. and Helm U.S. Corp., a wholly-owned subsidiary of German-based HELM AG, have entered into an exclusive long-term marketing and supply agreement for the distribution of Titanium Dioxide (TiO2) in the U.S. and Canada.
Under this agreement, HELM U.S. will exclusively market and distribute fifty percent (50%), up to 25,000 metric tons per year, of TiO2 produced from Argex's first industrial-sized plant to be located in Salaberry-de-Valleyfied, Québec. The agreement is for a period of seven years, commencing when the plant reaches a certain capacity which is currently expected to take place in the first quarter of 2017.
"This agreement combined with the supply agreement with PPG Industries, Inc. commits a significant quantity of the available capacity of Argex's first full scale titanium dioxide production plant," said Roy Bonnell, president and chief executive officer of Argex Titanium Inc. "This is a significant step for Argex. It demonstrates confidence in the scalability of our technology and in our ability to partner with world-class leaders in the industry."
"We are extremely pleased to be able to secure an additional supply of high quality titanium dioxide for our customers and add another milestone to the development of our distribution network in North America," said Philipp Mangold, president of HELM U.S. Corp. "This is a very exciting opportunity and we recognize the potential effect Argex's next generation process will have on the titanium dioxide industry."
