CRPG6

Tronox Pigmentos do Brasil S.A. is a chemical company specialized in 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, with an industrial project supported by SUDENE and BNDES, initially designed for a capacity of 22 thousand tons per year of TiO2. The process technology was originally acquired from Laport Industries Ltda., and, given the need for technological upgrading, the founding group entered into an association with Bayer do Brasil S.A. in 1971. Over the following decades, the company went through successive capacity expansions, corporate restructurings and changes of control until it was integrated into the Tronox group, now one of the leading global producers of titanium dioxide.

The corporate history of Tronox Pigmentos do Brasil includes integration into international chemical groups. In 2004, its then indirect controlling shareholder Millennium Chemicals Inc. was acquired by Lyondell Chemical Company, in a move that consolidated a large U.S. chemical company. In 2007, Lyondell entered into an agreement with National Titanium Dioxide Company Ltd. (Tronox) for the sale of its inorganic chemical business, including Millennium Inorganic Chemicals do Brasil S.A., culminating in the completion of the acquisition of the titanium dioxide business by Tronox on May 15, 2007. In 2019, there was another reorganization of indirect control, with the transfer of corporate control to Tronox Holdings plc, following authorization from the United States Federal Trade Commission (FTC), definitively integrating the Brazilian operation into the global structure of the Tronox group.

The business model of Tronox Pigmentos do Brasil is focused on the production and commercialization of titanium dioxide in the form of white pigment, used as an input in various industrial chains such as paints, coatings, plastics and paper. The company’s corporate purpose also includes the production and trade of chemical byproducts, raw materials used or not in its own production, as well as minerals such as ilmenite, rutile, kyanite and zircon. The operating structure is organized into a main segment for the production and processing of titanium dioxide, which accounts for almost all net revenue, and a minerals segment with marginal participation, especially after the shutdown of its own mining activity. The company also imports and exports raw materials and finished industrial products and may hold equity interests in other companies related to its industrial objectives.

Historically, the company operated on a vertically integrated basis, with the Guajú Mine, located in Mataraca, in the state of Paraíba, responsible for extracting titanium ore (ilmenite), an essential input for the production of TiO2 at the Bahia chemical plant. The mine began operating in 1983 and supplied ore to the plant located in Camaçari, about 1,100 km away, where the ore is transformed into titanium dioxide pigment through the sulfate process. Production activities at the Guajú Mine were fully shut down in December 2021, following the earlier discontinuation of zircon, rutile and kyanite production in 2020. The site still holds ilmenite inventories, expected to supply the manufacturing unit until approximately the end of 2025, while the closure of mining operations follows strategic and legal planning defined by regulatory and environmental authorities.

The industrial operation of Tronox Pigmentos do Brasil is based on the sulfate process to obtain pigmentary titanium dioxide. The Camaçari plant has an installed capacity of 60 thousand tons per year and produced 40,098 tons in 2024, corresponding to about 67% capacity utilization, above the 59% recorded in 2023. The production process involves successive stages, ranging from drying and milling the ore mix (ilmenite and titanium slag), through mixing with sulfuric acid, sulfation, dissolution, iron reduction, clarification, recovery of soluble TiO2, multiple filtration stages, hydrolysis and specific chemical treatments to control particle size and crystalline structure (anatase and rutile). This sequence is designed to obtain a pigment with optical properties suitable for industrial applications, with strict control of metallic impurities and desired characteristics of color, opacity and dispersion.

From a commercial standpoint, the company structures its distribution through its own salesforce and distributors, supported by a warehouse in São Paulo and by the plant itself to ship and deliver products to the domestic market, as well as carrying out exports from the Port of Salvador. The titanium pigment customer base is relatively diversified, although there are groups that individually account for relevant portions of revenue, such as the groups identified as A, B and C, which have significant shares in annual sales. All customers that represent more than 10% of net revenue are linked to the TiO2 pigment segment, within the company’s ongoing operations. Foreign revenue has a limited weight in cash generation, with exports mainly to Argentina and Bolivia, accounting for 0.70%, 6.30% and 1.22% of net revenue in fiscal years 2024, 2023 and 2022, respectively, which shows a predominant focus on the Brazilian market.

Tronox’s geographic presence in Brazil combines industrial, logistics and administrative assets. In the country, the company maintains the titanium dioxide pigment plant in Camaçari, in the state of Bahia, the commercial office in the city of São Paulo and the area of the former Guajú Mine, in Paraíba, currently in the process of operational shutdown and management of remaining inventories. Globally, the Tronox group is positioned as one of the world’s largest TiO2 producers, with seven pigment plants across five continents: two units in the United States, as well as plants in England, France, Saudi Arabia, Australia and Brazil. The Brazilian operation is part of this global production network, contributing a relevant volume to the supply of pigments for different regions and industrial segments.

The industrial activity of Tronox Pigmentos do Brasil is subject to environmental licensing and water use regulation. The Bahia plant operates under an Operating License issued by the Institute for the Environment and Water Resources (INEMA), valid until December 2026. The company also holds water use permits for the Fazendinha wells and surface water, also granted by INEMA, valid until 2026. The closure of the Guajú Mine follows guidelines established by environmental and mining authorities, focusing on legal compliance and specific procedures for mine closure, waste management and recovery of impacted areas.

In environmental, social and governance (ESG) aspects, Tronox Pigmentos do Brasil is aligned with the Tronox group’s global sustainability strategy. The company publishes annual sustainability reports aligned with GRI (Global Reporting Initiative) and GHG Protocol methodologies, with quarterly data collection from all global units, including the Bahia site, where greenhouse gas emissions, water use, and generation of effluents and waste are monitored. The Bahia plant uses 100% renewable energy, tracked via I-REC renewable energy certificates. Sustainability governance also incorporates TCFD recommendations, SASB standards and assessments by external platforms such as EcoVadis. The global materiality matrix considers environmental, social, responsible business and governance topics, and the company adopts the UN Sustainable Development Goals as a reference for setting internal targets, including health and well-being, quality education, gender equality, clean water and sanitation, decent work, innovation, reduction of inequalities, responsible consumption, climate action and protection of life on land. The company maintains ethics and community relations channels and links part of management’s and employees’ variable compensation to financial performance, safety, operational efficiency, quality, sustainability and environmental incident indicators.

The CRPG3, CRPG5 and CRPG6 shares therefore reflect Tronox Pigmentos do Brasil’s exposure to a capital-intensive industrial chemical business with demanding process technology, environmental management and relationships with large industrial customers, with a predominant focus on titanium dioxide production for the Brazilian market and operational integration into Tronox’s global pigment platform.