On October 14, LB Group, a leading enterprise in the titanium dioxide (TiO₂) industry, announced that its subsidiary Yunnan Metallurgical Xinli Titanium Industry Co., Ltd. (“Yunnan Xinli”) has filed a lawsuit with the Yunnan Provincial High People’s Court, alleging the misappropriation of trade secrets related to chloride-route TiO₂ technology.
The defendants are former senior executives Liu Jianliang, Jiang Shuan, and Zhao Zequan, as well as Hebei Yanshan Iron & Steel Group Co., Ltd. (Hebei Yanshan Steel). Yunnan Xinli seeks ¥1.311 billion in total compensation for economic losses and legal expenses.
Background of the Dispute
Technology involved:
The case concerns proprietary process and production technology for large-scale chloride-route TiO₂ production lines, introduced and protected under strict confidentiality by Yunnan Xinli.
This technology is considered a bottleneck core technology in China’s TiO₂ sector.
The chloride process, known for its low-carbon and environmentally friendly advantages and superior product quality, has become the mainstream production method. However, it has long been monopolized by foreign companies, with only a few domestic players—such as LB Group—having achieved large-scale production capability.
Defendants:
Liu Jianliang, Jiang Shuan, and Zhao Zequan were core management members at Yunnan Xinli between 2007 and 2019, holding key managerial and technical positions.
Liu Jianliang served as the company’s legal representative and chairman, and was also the leader of the “Chloride TiO₂ Technology Innovation Team.”
In the second half of 2019, Jiang and Zhao joined a company affiliated with Hebei Yanshan Steel, where they allegedly used Yunnan Xinli’s trade secrets to assist in building Hebei Yanshan’s chloride-route TiO₂ production line, sparking the dispute.
Legal proceedings:
The infringement case has been under judicial process for over three years.
In November 2022, Yunnan Xinli filed a police report after discovering potential leakage of trade secrets, which led to a formal investigation.
In May 2025, the Chuxiong Yi Autonomous Prefecture Intermediate People’s Court held the first criminal trial of Liu, Jiang, and Zhao on charges of infringing trade secrets. The verdict has not yet been announced.
Project Context: Hebei Yanshan’s Chloride TiO₂ Ambition
Hebei Yanshan Steel is actively expanding into the chloride-route TiO₂ sector.
Through its wholly owned subsidiary Hebei Jicheng New Materials Co., Ltd., it plans to invest ¥12 billion in three projects—lithium carbonate/hydroxide, chloride-route TiO₂, and carbon materials—claiming to adopt “world-class sub-nanometer chloride TiO₂ process technology.”
Its goal is to build a one-million-ton TiO₂ production base.
On May 30, 2025, Hebei Jicheng New Materials filed a “non-infringement confirmation” lawsuit against Yunnan Xinli, seeking a ruling that it did not violate any IP rights. The case was heard on June 26 by the Xiong’an New Area Intermediate People’s Court, involving a disputed amount of ¥500,000.
The case remains unresolved, resulting in mutual litigation between the two sides.
Recent Developments in China’s Chloride-Route TiO₂ Projects
- Jinzhou Titanium Industry is planning a new chloride-route TiO₂ production base.
- CITIC Titanium Industry aims to commission a 320,000-ton chloride-route TiO₂ project by 2025, expected to add ¥8 billion in output value.
- Pangang Vanadium & Titanium reached full production of its 60,000-ton chloride TiO₂ line in March 2025.
- On August 27, Haifeng Hetai (a subsidiary of Tianyuan Co.) announced a ¥185 million investment in a chloride-route TiO₂ tailings recycling project.
- Bengbu Guotai Nano Materials Co., Ltd. (controlled by Bengbu Investment Group) recently achieved stable mass production on its 80,000-ton chloride-route TiO₂ line.
The company had earlier invested ¥1.743 billion in a TiO₂ project using advanced chloride technology, with a planned total capacity of 300,000 tons.
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