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Harvard Business School 9-390-114 Rev. August 15, 1994 Du Ponts Titanium Dioxide Business (B) Du Ponts Executive Committee approved the growth strategy on May 31, 1972. It called on Du Pont to add 335,000 tons per year (tpy) of dexterity over the period from 1972 to 1985, an amount roughly equal to marketplace growth projections. This expansion was to proceed in two phases. From 1972 to 1976, susceptibility was to be added by expanding the plants at New Johnsonville and at bounds Moor. (The latter was being converted entirely to the ilmenite chloride process.) The closing of Antioch, which had been plan for 1972, was also deferred. In the second phase of expansion, a 100,000 tpy ilmenite chloride run along at a new site was scheduled to be started up in 1977. By 1985, Du Pont planned to add a second line at the new U.S. plant. As a result of the planned expansion, the fraction of Du Ponts ore requirements met by its actual mines and long-term contracts was expected to drop from 81% in 1972 to 30% in 1982. Du Pont acquired an interest in a large ilmenite squeeze in Australia in late 1972 and also decided to participate, where it could, in competitors rutile exploration efforts.

Du Pont continued to be approached by domestic competitors, curiously NL, who postulateed to license its ilmenite chloride technology. Similar requests had started to trickle in from producers in Japan, Western Europe and Brazil although royalties had not yet been discussed. Because of the shutdown of NLs 50,000 tpy rutile chloride facility, the slower-than-expected expansion of Du Ponts existing plants, and a sensitive surge in demand, 95% of good industry substance was being used in mid-1972. (Du Ponts own effective capacity utilization was 92%.) KerrMcGee moved to exploit this base supply-demand balance by announcing on June 15, 1972 that it would raise rutile-grade Ti02 prices from 26¢/lb. to 28¢/lb., effective July 1. American Cyanamid quickly informed customers, who told Du Pont,... If you want to get a full essay, order it on our website: Ordercustompaper.com

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