CRPG3: quote, dividends and indicators for Tronox Pigmentos do Brasil

Tronox Pigmentos do Brasil S.A. is a chemical company focused on producing white titanium dioxide (TiO2) pigment, with shares traded on B3 under the tickers CRPG3, CRPG5 and CRPG6. The company was founded on January 25, 1966, in an industrial project supported by SUDENE and BNDES, with an initial capacity of 22 thousand tons per year of TiO2. The production process technology was originally licensed from Laport Industries Ltda., and, given the need for technological upgrades, the founding group sought a partnership with Bayer do Brasil S.A. in 1971. Over the following decades, the company went through successive capacity expansions, reaching 50 thousand tons per year in 1982 and 60 thousand tons per year in 1997, consolidating itself as a relevant producer in the titanium pigment segment in Brazil.

The corporate history of Tronox Pigmentos do Brasil includes major international reorganizations. In 2004, its then indirect parent Millennium Chemicals Inc. merged with Lyondell Chemical Company, in a transaction that created one of the largest chemical groups in North America. In 2007, Lyondell completed an agreement with the National Titanium Dioxide Company Ltd. (Tronox) to dispose of its inorganic chemicals business, including Millennium Inorganic Chemicals do Brasil, which gave rise to the current Tronox Pigmentos do Brasil. The acquisition of the titanium dioxide business was completed on May 15, 2007, making Tronox the new indirect parent of the Brazilian operation. In 2019, indirect corporate control was transferred to Tronox Holdings plc, after approval by the Federal Trade Commission (FTC) in the United States, consolidating the integration of the Brazilian unit into Tronox’s global platform, now one of the largest TiO2 producers in the world, with seven plants across five continents.

Tronox Pigmentos do Brasil’s activities focus on the production and sale of chemical products, especially white titanium dioxide pigment and its by-products, as well as the production, industrialization and sale of raw materials used or not in its own production process. The company also operates in the production, beneficiation, import and export of ores in general, with a historical focus on ilmenite, rutile, kyanite and zircon, as well as in the import and export of finished industrial products. The company may also hold equity interests in other companies, whether or not related to its core business. The business is organized into two segments: production and industrialization of titanium dioxide, and ore trading, although proprietary mining activities have been substantially discontinued with the shutdown of the Guajú Mine.

In Brazil, industrial operations are centered on the plant in Camaçari, in the state of Bahia, which uses the sulfate process to produce TiO2 pigments. Installed capacity is 60 thousand tons per year, with 42,008 tons produced in 2025, representing utilization of approximately 70% of capacity, above the 67% seen in 2023. The production process is complex and involves successive stages of drying and grinding of the ore mix (ilmenite and titanium slag), mixing with sulfuric acid, sulfation, dissolution, iron reduction, clarification, TiO2 recovery, multi-stage filtrations, hydrolysis, acid and alkaline treatments, primary and secondary seeding to control the crystalline structure (anatase and rutile), and final purification phases. The company maintains operational controls aimed at mitigating shutdowns related to critical inputs such as water, energy, natural gas, slag, ilmenite and sulfuric acid, seeking stability in supply and efficiency in the production line.

Historically, Tronox Pigmentos do Brasil operated the Guajú Mine in Mataraca, in the state of Paraíba, responsible for extracting ilmenite, rutile, kyanite and zircon. This mine is located about 1,100 km from the Bahia plant and played an important role in vertically integrating the titanium supply chain. Production of zircon, rutile and kyanite ended in 2020, and the mine’s production activities were fully discontinued in December 2021, with only ilmenite stock remaining on site. This stock continues to be used as feedstock for the Camaçari plant, with expected supply through fiscal year 2026. The mine closure follows a strategic and legal plan monitored by regulatory and environmental protection agencies, including mine closure and land reclamation actions, in line with regulatory requirements for the mining sector.

Tronox Pigmentos do Brasil’s commercial activities are supported by its own sales structure and distributors, as well as a warehouse in São Paulo that complements the logistics for shipping production from Bahia. The company also uses the Port of Salvador for exports. Demand and production management is based on a commercial system integrated with a sales and operations planning (S&OP) process with strategic customers, seeking to align orders, installed capacity and the build-up of pigment and raw material inventories. Revenue is heavily concentrated in the titanium pigment segment, with the main customer groups that each account for more than 10% of net revenue always associated with this product. The foreign market accounts for a small share of the company’s revenue: exports represented 0.72% of net revenue in 2025, 0.70% in 2024 and 6.30% in 2023, focused on South American countries, mainly Argentina and Bolivia, with occasional sales to Ecuador in 2023.

From a regulatory standpoint, the industrial operation in Bahia is subject to state environmental licensing and water use concessions. Tronox Pigmentos do Brasil holds an operating license issued by the Instituto do Meio Ambiente e Recursos Hídricos (INEMA), valid until December 2026, with a renewal process underway, which allows operations to continue while the renewal is under review. The company also holds specific concessions for groundwater abstraction from the Fazendinha wells and for surface water abstraction, both issued by INEMA, also with renewal processes filed within legal deadlines. There is no indication of any material influence from foreign regulations in the jurisdictions where the company generates export revenue, which underscores the predominantly domestic nature of its activities, regulated at the Brazilian state and federal levels.

In terms of environmental, social and governance practices, Tronox Pigmentos do Brasil is aligned with the Tronox group’s global agenda. The company reports its sustainability indicators through annual reports based on the GRI (Global Reporting Initiative) methodology and the GHG Protocol for accounting greenhouse gas emissions. For the Bahia site, a quarterly assessment of the carbon footprint is carried out, including water use, effluent generation, waste and its final destination. The Bahia plant uses 100% renewable energy in its production processes, with I-REC certification that tracks the origin of the energy purchased. Additionally, Tronox adopts methodologies such as TCFD and SASB in its global reports, as well as partnerships with sustainability rating platforms such as Ecovadis. The global materiality matrix covers environmental, social, responsible business and governance topics, and the company aligns its targets with the UN Sustainable Development Goals (SDGs) considered most relevant to its business, such as good health and well-being, quality education, gender equality, water and sanitation, decent work, innovation, reduced inequalities, responsible consumption, climate action and protection of terrestrial ecosystems.

Tronox Pigmentos do Brasil’s governance and performance management structure incorporates financial and sustainability indicators tied to variable compensation for managers, officers and employees through profit-sharing programs. Among the global metrics, the highlights include free cash flow generation, adjusted EBITDA, capex, EBITDA margin, as well as safety indicators (rates of recordable and lost-time injuries) and CO2 emission intensity per ton produced. For the Bahia unit, specific indicators are monitored for operational safety, product quality, manufacturing cost and TiO2 production volume. The indicators linked to the profit-sharing (PLR) program include, among others, number of environmental incidents, volume produced, total manufacturing cost, product compliance and industrial efficiency. The company maintains formal ethics and compliance channels, including hotlines for whistleblowing and communication with the community, reinforcing governance mechanisms and stakeholder engagement in the context of its industrial operations and its shares listed on B3.