By Connor Hart

Tronox said it expects to record an up to $80 million charge tied to the closure of a titanium dioxide plant in China, as the company faces changing market conditions that affect operations.

The mineral producer on Monday said the closure is the result of the continuing weak Chinese domestic demand and increasing costs, particularly for sulfur, a key raw material for titanium dioxide pigment.

The closure will affect about 550 employees and result in charges of $60 million to $80 million, mostly during the fourth quarter, including roughly $35 million to $45 million of non-cash write-downs, Tronox said.

Cost savings are projected to exceed $15 million annually, and the company doesn't expect the closure to affect its ability to serve customers given its global manufacturing footprint.

"Unfortunately, the prolonged market downturn combined with rising production costs eroded the financial and commercial viability of continued operations," Chief Executive John Romano said.

"The closure was also necessitated by Chinese competitors' continued excess production and unsustainable pricing."

Tronox also said that it expects to report fourth-quarter revenue of around $730 million, up 8% from last year's comparable period. The company projected a net loss of $176 million.

Romano noted that while sales volumes were stronger than anticipated, pricing remained challenged. The company will provide full fourth-quarter results and additional commentary on an earnings call next month, he added.

Shares rose 2.2% to $6.43 in premarket trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

January 26, 2026 08:34 ET (13:34 GMT)

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