"...In 2011, Alcoa (NYSE:AA) officially unveiled a building panel that could “eat” pollution out of the air. Not only that, but the panel, using the chemical reaction of titanium dioxide and sunlight, could also clean itself. The original panels were unremarkable, modest looking pieces of aluminum, but the use of silver titanium dioxide pigment they were painted with triggered a burst of innovation. Now, less than two years since Alcoa introduced the technology, the science of buildings that literally digest pollution is on the verge of entering mainstream architecture.
I've tried to explain this a half dozen times but Yahoo has rejected my response. The analyst in the article has explained that Tronox has 3.5m tonnes of ilmenite ore and 211,000 tonnes of surplus rutile ore, along with wanting to utilise $1.6bn in US net operating loss carryforwards (NOLs).
Tronox uses a chloride based process to produce TiO2 but Tronox's supply of ore is used for the sulphate TiO2 production process rather than the more state of the art chloride process. So the analyst concluded that Tronox is looking for a company that uses the sulphate production process. More than half of Huntsman's TiO2 production facilities use the sulphate process. The analyst estimated Huntsman's TiO2 assets to be worth 1 to 1.5 billion dollars (Tronox just raised 1.3 billion).
He ruled out Kronos for anti-trust reasons because they have a lot of chloride processes like Tronox. Rockwood was ruled out because they don't have U.S. assets and wouldn't be able to use their NOLs. If you want more detail go to Alembic Global Advisors. The analyst was Hassan Ahmed.