Amid the current industry-wide downturn, most titanium dioxide companies face restructuring. On how to achieve effective mergers and restructuring and eliminate outdated capacity, industry participants believe market-oriented reform must come first. Companies should be allowed to choose the best options themselves, improving the efficiency of mergers and restructuring.

　　Specifically, the market's invisible hand should first be allowed to clear the market, without government interference in the industry's spontaneous adjustment. Second, information barriers should be broken down and policy transparency increased so that all types of companies can make decisions and compete relatively freely. Avoiding forced pairings is a key part of restructuring and consolidation. Partnerships between strong companies have become the main theme of industrial optimization, while small companies wrestling with the choice between acquisition and exit face an uncertain future.

　　Restructuring, mergers and acquisitions are an inevitable trend in the titanium dioxide industry's consolidation. In this wave of consolidation, the painful adjustment faced by small companies leaves their prospects uncertain. Small titanium dioxide producers and traders struggling around the break-even point face an extremely difficult path. First, national environmental policies are becoming stringent and adopting zero tolerance. Second, falling market prices, steadily shrinking market positions, excessive initial investment and insolvency add to the unfavorable conditions. Continuing means anxious struggle, yet stopping makes it hard to accept defeat. Amid this dilemma, companies see a path through restructuring, mergers and consolidation. Mergers and restructuring to optimize the industrial structure have long been regarded as an important measure for resolving the industry's conflicts.

　　Global titanium dioxide production capacity is highly concentrated: the seven leading suppliers account for approximately 60% of total global capacity. China has more than 70 titanium dioxide producers, accounting for approximately 35% of global capacity. It is understood that China has a serious surplus of low-end capacity and insufficient high-end capacity. As environmental requirements become stricter, the titanium dioxide industry will inevitably undergo a capacity-reduction process similar to that seen in Europe and the United States. This will promote industry upgrading, gradually increase the share of the chloride process, improve industry concentration and allow leading companies with greater influence to emerge.

　　According to industry analysts, China is likely to have around five producers with annual output exceeding several hundred thousand tonnes within the next few years. If the number of producers falls from more than 70 to 5, the current industry downturn means that the vast majority of titanium dioxide companies will face restructuring. As for how to carry out mergers and restructuring effectively and eliminate outdated capacity, industry participants believe that market-oriented reform must come first, allowing companies to choose the best options for themselves and improving the efficiency of mergers and restructuring. Specifically, the market's invisible hand should first be allowed to clear the market, without government interference in the industry's spontaneous adjustment. Second, information barriers should be removed and policy transparency increased, allowing different types of companies to make decisions and compete more freely. Avoiding forced matches is one of the keys to restructuring and consolidation. The main theme of optimizing the industrial structure through partnerships between strong companies is already underway, while the prospects for small companies agonizing over acquisition or exit remain troubling.