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 backed by SUDENE and BNDES, initially designed for annual capacity of 22 thousand tons of TiO2. The process technology was originally acquired from Laport Industries Ltda., and, given the need for technological updates, 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 in control until it became part of the Tronox group, now one of the main global producers of titanium dioxide.

The corporate trajectory of Tronox Pigmentos do Brasil includes integration into international chemical groups. In 2004, then indirect parent 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 chemicals business, including Millennium Inorganic Chemicals do Brasil S.A., culminating in completion of the acquisition of the titanium dioxide business by Tronox on May 15, 2007. In 2019, there was a further reorganization in indirect control, with the transfer of corporate control to Tronox Holdings plc, after authorization by the U.S. Federal Trade Commission (FTC), definitively integrating the Brazilian operation into the Tronox group’s global structure.

Tronox Pigmentos do Brasil’s business model is focused on the production and sale of titanium dioxide in the form of white pigment, used as an input in several industrial value chains such as paints, coatings, plastics and paper. The company’s corporate purpose also includes the production and trade of chemical by-products, 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 industrialization of titanium dioxide, which accounts for almost all net revenue, and a mining segment with marginal contribution, 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 in a vertically integrated model, with the Guajú Mine, located in Mataraca, in the state of Paraíba, responsible for extracting titanium ore (ilmenite), an essential input for TiO2 production 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 processed into titanium dioxide pigment using the sulfate process. Production activities at the Guajú Mine were fully shut down in December 2021, after zircon, rutile and kyanite production had already been discontinued in 2020. The site still holds ilmenite inventories, which are expected to supply the manufacturing unit until approximately the end of 2025, while the mine closure process follows a strategic and legal plan defined by regulatory and environmental authorities.

Tronox Pigmentos do Brasil’s industrial operation is based on the sulfate process to obtain pigment-grade titanium dioxide. The Camaçari plant has 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, 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 suited to industrial applications, with strict control of metallic impurities and targeted characteristics of color, opacity and dispersion.

From a commercial standpoint, the company structures its distribution through an in-house salesforce and distributors, supported by a warehouse in São Paulo and the plant itself to ship and deliver products to the domestic market, in addition to exports shipped from the Port of Salvador. The titanium pigment customer base is relatively diversified, although certain groups account individually for meaningful shares of revenue, such as the groups identified as A, B and C, which have significant participation in annual sales. All customers that represent more than 10% of net revenue are tied to the TiO2 pigment segment, within the company’s ongoing operations. Foreign revenue has a limited role in cash generation, with exports mainly to Argentina and Bolivia, representing 0.70%, 6.30% and 1.22% of net revenue in 2024, 2023 and 2022, respectively, which indicates a predominant focus on the Brazilian market.

Tronox’s geographic footprint in Brazil combines industrial, logistics and administrative assets. In the country, the company maintains the titanium dioxide pigment plant in Camaçari, Bahia, the commercial office in the city of São Paulo, and the area of the former Guajú Mine in Paraíba, currently in the stage 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 distributed across five continents: two units in the United States, plus plants in England, France, Saudi Arabia, Australia and Brazil. The Brazilian operation is integrated into this global production network, contributing a relevant volume of pigments to supply different regions and industrial segments.

Tronox Pigmentos do Brasil’s industrial activity is subject to environmental licensing and water-use regulation. The Bahia plant operates under an Operating License issued by the Instituto do Meio Ambiente e Recursos Hídricos (INEMA), valid until December 2026. The company also holds water-use grants for the Fazendinha wells and for surface water, also granted by INEMA, valid through 2026. The closure of the Guajú Mine follows guidelines set by environmental and mining authorities, with a focus on legal compliance and specific procedures for mine closure, waste management and recovery of impacted areas.

In environmental, social and governance (ESG) matters, Tronox Pigmentos do Brasil is part of the Tronox group’s global sustainability strategy. The company publishes annual sustainability reports aligned with GRI (Global Reporting Initiative) and the GHG Protocol, with quarterly data collection for all global units, including the Bahia site, where greenhouse gas emissions, water use, and effluent and waste generation 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 covers 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, reduced inequalities, responsible consumption, climate action and protection of life on land. The company maintains ethics and community relations channels and links part of variable compensation for management and employees to performance indicators related to financial results, safety, operating efficiency, quality, sustainability and environmental incidents.

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