Argex expands titanium dioxide production in Canada

01-May-2013 - Last updated on 02-May-2013 at 14:58 GMT

Titanium dioxide producer Argex will up its production of the sunscreen ingredient having signed a memorandum of understanding (MOU) with Valleyfield Enterprises for a long-term lease of at least 235,000 square feet of existing building space located in Quebec, Canada.

This location will house the company's first industrial scale titanium dioxide (TiO2) production facility and will serve the cosmetics industry, as well as the food pharmaceuticals and coatings markets.

Located in the Perron Industrial and Harbour Front Park, Argex says the site can accommodate additional TiO2 production modules and offers significant expansion potential enabling the company to save time and avoid the large capital expenditures associated with greenfield plant construction.

"This represents an important milestone for Argex at a time when the Company is accelerating its progress towards production, and it removes many of the risks associated with a lengthy construction project," declared Roy Bonnell, president and CEO of Argex.

"The location of our plant in Valleyfield will easily facilitate delivery of the raw materials and by-products from our supply partners and provide us with the option to expand the infrastructure already available."

Location, location, location…

The location is one of the key talking points concerning the deal as it provides Argex with many benefits, such as the close proximity to Hydro Quebec's Beauharnois generating station, one of the largest hydroelectric power plants in the world.

The plant's close proximity to Montreal's Trudeau International Airport will also make it easy for customers and potential partners to visit the Argex facilities.

Argex Titanium is the first TiO2 production company to come to Salaberry-de-Valleyfield, and the mayor, Denis Lapointe believes this marks a significant moment for the region as an industrial hub.

“The future of our great community involves innovative projects that combine sustainable development with economic development. It is clear that our city is becoming more and more an industrial hub for mineral processing plants thanks to our road, rail and port infrastructures,” he said.

Carmine Como, a representative of Valleyfield Enterprises, commented that Argex’s decision to select this site for the long-term is seen as a significant contribution to the revitalization of the Perron Industrial Park.