China’s titanium dioxide (TiO₂) industry is undergoing an unprecedented contraction. Both domestic and international producers are moving to cut capacity amid persistent oversupply, weak demand, and mounting cost pressures.
On January 16, Gpro Titanium Industry Co., Ltd. announced that 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 driven by falling TiO₂ prices. The Company noted that it has remained in a loss-making position in recent years. Moreover, it sees little prospect of a near-term recovery.
Industry data underscore the severity of the situation. According to statistics released by the Secretariat of the Titanium Dioxide Industry Technology Innovation Strategic Alliance, China’s total TiO₂ output in 2025 declined to 4.72 million tonnes. This is down 47,000 tonnes year-on-year, a decrease of 1.0%. This marked the first annual decline in China’s TiO₂ production in more than two decades. Meanwhile, industry capacity utilization fell to just 77.3%. This signals severe overcapacity and a pronounced supply-demand imbalance.
Gpro Titanium stated that the suspension of Xuzhou TiO₂ is intended to reduce operating costs and prevent further financial losses. During the shutdown period, the subsidiary will carry out equipment maintenance and overhauls to ensure safe, environmentally compliant, and efficient operations. Future restart plans will be determined based on market conditions. Xuzhou TiO₂ has an annual capacity of 80,000 tonnes. This accounts for 50% of the Company’s total TiO₂ capacity. Its suspension is expected to significantly reduce TiO₂ output and have a material impact on operating revenue in 2026.
At the same time, global producers are also retreating from the Chinese market. Tronox Holdings plc (NYSE: TROX), the world’s leading integrated manufacturer of titanium dioxide pigment, recently announced its intention to permanently close its 46,000-tonne-per-year TiO₂ plant in Fuzhou, China. The closure reflects prolonged weakness in domestic Chinese demand and rising production costs—particularly sulfur, a key raw material. Additionally, continued excess TiO₂ production in China is a factor. Approximately 550 permanent employees at the site are expected to be affected.
Tronox estimates that it will incur restructuring and related charges of approximately USD 60–80 million, primarily in the fourth quarter of 2025. These costs include USD 35–45 million of non-cash asset write-downs. Annual cost savings from the closure are expected to exceed USD 15 million. Owing to its globally diversified manufacturing footprint, Tronox stated that the shutdown will not affect its ability to serve customers.
Commenting on the decision, Tronox Chief Executive Officer John D. Romano said that the prolonged market downturn combined with rising production costs has eroded the financial and commercial viability of continued operations. He added that Chinese competitors’ continued excess production and unsustainable pricing were also key factors behind the decision.
Despite the suspension at Xuzhou TiO₂, Gpro Titanium emphasized that its other operations remain unaffected. TiO₂ production at its wholly owned subsidiary Nanjing Titanium Dioxide Chemical Co., Ltd. continues as normal. In addition, sulfuric acid production at its majority-owned subsidiary Anhui Gpro New Energy Technology Development Co., Ltd. is also unaffected.
