Chemours Co. held a “placing of the first stone” event on Saturday to mark the start of construction of a new Chemours Mining Solutions manufacturing facility in the state of Durango, Mexico. This project represents an estimated $150 million investment.
Chemours is the world’s largest producer of solid sodium cyanide, which is used in the extraction of gold. Located in the municipality of Gómez Palacio, this new facility will ensure a safe and reliable supply to the mining industry in Mexico, a release stated.
As its name indicates, sodium cyanide can be toxic in some instances.
Last year, the company expanded production of titanium dioxide at its mine-plant inAltamira, Mexico, plant. Shortly after its spin-off from DuPont, the company closed down the high-cost Edgemoor titanium dioxide processing site. Titanium dioxide is used in paint and other areas.
“This project is a further demonstration of our five-point transformation plan and will support the growing needs of the Mexican mining market,” said Mark Vergnano, Chemours CEO. “We’ve had successful operations in Mexico for over 90 years, and this undertaking reinforces our continued commitment to our Chemours Mining Solutions business.”
According to Chris Siemer, president of the company’s chemical solutions business unit: “Mining companies count on us for consistent, reliable supply to help keep their operations running. This production facility in Mexico will significantly increase our capacity and will include state-of-the-art manufacturing technology and production processes.Its location near some of the largest deposits of gold and silver in Mexico and in the heart of the mining industry will enable us to broaden our support to our customers by providing a distinct competitive advantage in supply chain routing.”
The investment in Mexico is part of a plan by the company to combine investments and debt reduction following the split off from DuPont. Shares have been trading a $35 a share after to dropping to the $4 level last year.
Shares have been trading a $35 a share after to dropping to the $4 level last year as investors warm up to the company’s prospects. Chemours has also made a commitment to stay in Wilmington at the former DuPont building. The building will undergo a renovation project.