China’s titanium dioxide (TiO₂) industry is undergoing an unprecedented contraction. Both domestic and international producers are cutting capacity as they face persistent oversupply, weak demand, and mounting cost pressures.
Gpro Titanium Suspends Operations
On January 16, Gpro Titanium Industry Co., Ltd. announced it will suspend operations at its wholly owned subsidiary, Xuzhou Titanium Dioxide Chemical Co., Ltd. (“Xuzhou TiO₂”). The company cited intensifying market competition and prolonged losses from falling TiO₂ prices as the primary reasons. Gpro noted that it has remained in a loss-making position for years and sees little prospect for a near-term recovery.
Recent industry data underscore the severity of the situation. According to the Secretariat of the Titanium Dioxide Industry Technology Innovation Strategic Alliance, China’s total TiO₂ output in 2025 declined to 4.72 million tonnes—a 1.0% decrease year-on-year. This marks the first annual decline in China’s TiO₂ production in more than two decades. Meanwhile, industry capacity utilization fell to just 77.3%, signaling a pronounced supply-demand imbalance.
Gpro Titanium stated that the suspension of Xuzhou TiO₂ will reduce operating costs and prevent further financial losses. During the shutdown, the subsidiary will overhaul equipment to ensure safe and efficient operations. The company will determine future restart plans based on market conditions. Since Xuzhou TiO₂ represents 50% of the company’s total capacity, the suspension will significantly reduce output and impact 2026 revenue.
International Retreat: Tronox Closes Fuzhou Plant
At the same time, global producers are retreating from the Chinese market. Tronox Holdings plc (NYSE: TROX), the world’s leading integrated manufacturer of titanium dioxide pigment, recently announced its plan to permanently close its 46,000-tonne-per-year plant in Fuzhou, China.
Tronox attributed the closure to:
- Prolonged weakness in domestic Chinese demand.
- Rising production costs (particularly for sulfur).
- Continued excess production from Chinese competitors.
The closure will affect approximately 550 permanent employees. Tronox expects to incur restructuring charges of USD 60–80 million but anticipates annual cost savings exceeding USD 15 million. Because of its diversified global footprint, the company stated the shutdown will not affect its ability to serve customers.
Tronox Chief Executive Officer John D. Romano commented that the market downturn and rising costs have eroded the commercial viability of the plant. He highlighted that unsustainable pricing from competitors also drove the decision.
Despite the suspension at Xuzhou, Gpro Titanium emphasized that its other operations, including Nanjing Titanium Dioxide Chemical Co., Ltd. and sulfuric acid production at Anhui Gpro, will continue as normal.
