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Chemours and PCC Group Enter Into Chlorine Supply Agreement

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The Chemours Company (CC - Free Report) recently announced that the PCC Group intends to build and operate a chlor-alkali facility on the grounds of Chemours' titanium dioxide (TiO2) plant in DeLisle, MS. Chemours and PCC have signed a chlorine supply agreement subject to certain customary conditions. The new plant will use cutting-edge technology to maximize energy efficiency and will have an annual nameplate capacity of 340,000 metric tons once operational. PCC will sell the co-product and caustic soda to key partners as well as in the open market. Construction is expected to begin in early 2026, with the facility becoming operational in 2028.

Chemours Titanium Technologies has taken a critical step further in its Pathway to Thrive operational excellence transformation by partnering with the PCC Group to improve supply reliability through on-site chlorine at its DeLisle TiO2 plant. This new partnership, which requires no upfront financial commitment from Chemours, will allow the company to reduce manufacturing costs while better serving its clients as their preferred TiO2 partner. It also demonstrates the company's dedication to the Mississippi Gulf Coast community.

PCC said that it is committed to using its decades of experience to safely and responsibly expand its chemical business at this plant. The company looks forward to a successful collaboration with Chemours, which will set a benchmark in the industry while exploring additional opportunities in the region.

The project will provide full-time opportunities for skilled PCC professionals, as well as up to 1,200 temporary construction jobs.

Chemours’ shares have lost 31.8% in the past year against the Zacks Chemicals Diversified industry’s 0.8% rise.

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The company expects consolidated net sales to decline in the mid to high-single digits sequentially in the fourth quarter. Consolidated adjusted EBITDA is forecast to be down in the high teens to low 20% range compared with third-quarter 2024. 

CC expects a mid-to-high-single-digit sequential sales decline in Titanium Technologies in the fourth quarter on seasonality-driven lower volumes. Adjusted EBITDA for the unit is forecast to decline in mid-to-high teens.

CC’s Rank & Key Picks

CC currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , DuPont de Nemours, Inc. (DD - Free Report) and CF Industries Inc. (CF - Free Report) . 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 177.8% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DD’s current-year earnings is pegged at $3.88 per share, indicating a year-over-year rise of 11.5%. DD, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 12.9%. The company's shares have rallied roughly 17.1% in the past year.

The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.32 per share. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missing twice, with the average earnings surprise being 10.3%. CF has rallied around 16.8% in the past year.

 

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