Tronox (TROX) said Monday it plans to idle its 90,000 metric ton per year titanium dioxide plant in Botlek, Netherlands, following a strategic review of its operations.

The plant has been shut down since March 6 due to an issue with its chlorine supplier. After consulting with the local works council, the facility is not expected to restart, the company said, adding that this will not affect its ability to supply customers, as it will use other facilities to continue production.

Tronox cited challenges from global supply imbalances, including competition from China, as well as a difficult operating environment over the past two and a half years as factors behind the decision. The move is expected to optimize its remaining facilities and improve manufacturing costs.

Around 240 employees will be affected, according to the company.

Tronox expects restructuring costs of $130 million to $160 million over the next 18 months and projects annual savings of more than $30 million starting in 2026. It also expects free cash flow to exceed $50 million in 2025.

Shares of Tronox were up 2% in recent trading.

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