GREY:ARGEF - Post by User
Comment by
juanito1on Jun 13, 2013 9:01am
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Post# 21519404
Morri again Fails
Morri again Fails to see the picture...PPG just bought Akzo and another coating producer in NA. That puts their need for Ti02 in NA at about 80,000 tons annually. At a saving of $2500/ton...Thats a savings of $200Million a year...for ever...
Now suppose PPG uses somewhere around 200,000 tons of Ti02...THIS IS AN ACCURATE NUMER...i HAVE CHECKED. That is a savings of $500 Million per year....Why would they even bother producing any product for the rest of the paint industry??? What an incredible price advantage...Imagine the business they would win because they would be the low cost producer for miles...Now I ask you....what is Argex worth??? 3 to 4 times those savings??? Or another way to look at it...3 to 4 years payback???$1.5 to $2 Billion...imho...