Tronox Inc., which makes titanium dioxide pigment for a variety of uses, said Tuesday it signed a deal to supply titanium tetrachloride to RTI International Metals Inc.
Under the agreement, RTI plans to build a titanium sponge plant next to an existing Tronox factory in Hamilton, Miss. that produces titanium tetrachloride. Titanium sponge is used to make titanium products for aircraft, military equipment and other applications.
Tronox said it expects to generate operating profits and cost savings totaling $12 million to $15 million once RTI's plant is fully operational. The facility is expected to begin operating in 2010 and expand production over the next several years.
Tronox shares added 22 cents, or 5.3 percent, to $4.35 Tuesday. The stock added 10 cents to $4.45 in aftermarket activity.
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