Huizheng Information, April 14, 2017: Fujian Kuncai Material Technology Co., Ltd. (hereinafter referred to as “Kuncai Technology”) was listed on the Main Board of the Shanghai Stock Exchange, marking a new phase in the company’s development. Over the past six years, as the first publicly traded company in China’s pearlescent pigment industry, Kuncai Technology has leveraged integrated full-industry-chain operations and research-driven innovation to transition from rapid growth to high-quality development...

Huizheng Information, April 14, 2017: Fujian Kuncai Material Technology Co., Ltd. (hereinafter referred to as “Kuncai Technology”) was listed on the Main Board of the Shanghai Stock Exchange, marking a new phase in the company’s development. Over the past six years, as the first publicly listed company in China’s pearlescent pigment industry, Kuncai Technology has leveraged integrated full‑industry‑chain operations and technological innovation to transition from rapid growth to high‑quality development. The company has not only successfully joined the ten‑billion‑yuan club but has also consistently maintained a leading voice in the industry.

 

From its founding in 1999 to becoming the first publicly listed company in China’s pearlescent pigment industry in 2017, and now boasting a valuation exceeding RMB 10 billion, Kunchai Technology has achieved an order-of-magnitude leap in brand value in just over two decades. As a result, leading global Fortune 500 companies—including PPG, Procter & Gamble, Unilever, and Shiseido—have extended offers of collaboration.

Starting from scratch, proactively shifting tracks to unlock sustainable growth potential.

 

Having seized the initiative in the pearlescent pigment sector, Kuncai Technology, which has consistently embraced the new development philosophy, has now turned its attention to titanium dioxide, another key raw material for coatings.

 

Titanium dioxide is the third-largest inorganic chemical, trailing only synthetic ammonia and phosphoric acid. Owing to its high refractive index, it serves as a premium pigment, and its price trends significantly influence the viability of downstream industries.

 

China ranks first worldwide in titanium resource reserves; however, its titanium dioxide production technology and product quality lag far behind international standards, leaving the country unable to wield significant influence in the industry. Since 2009, China has maintained the world’s largest titanium dioxide production capacity, and by 2021, its annual output had reached 4.495 million tons, accounting for 52.78% of global capacity.

 

However, Kunchai Technology has also observed that the vast majority of titanium dioxide produced domestically still relies on the sulfuric acid process, which is characterized by a complex production flow, substantial waste and by‑product generation, and high emissions of the “three wastes.” Moreover, the resulting titanium dioxide products struggle to meet the stringent requirements of high‑end applications in terms of weather resistance and purity. By contrast, the relatively more efficient chloride process faces significant constraints—such as shortages of key raw materials like high‑titanium slag and synthetic rutile, as well as the technological edge being dominated by a handful of international firms—leaving only a small number of leading companies capable of large‑scale production.

 

Clearly, only if its titanium dioxide production process is sufficiently cutting-edge can Kuncai Technology seize the opportunity to leapfrog its competitors. Starting virtually from scratch in the titanium dioxide industry, Kuncai Technology spent 12 years and invested RMB 1.2 billion in R&D to independently develop the world’s first third-generation hydrochloric acid extraction technology, securing the corresponding patents and firing the opening shot in breaking free from the industry’s technological monopoly and reshaping the market landscape.

 

The hydrochloric acid extraction process is based on a preparation route similar to that of the sulfuric acid method, yet it employs production technologies distinct from both the sulfuric acid and chlorination methods. Through key steps such as extraction and calcination, it can yield high‑quality titanium dioxide products comparable to those produced by the chlorination process. As an emerging technology, it places modest demands on feedstock quality, features a short process flow and low costs, and enables zero solid waste generation while promoting the recycling of major auxiliary materials. These attributes make it truly disruptive to the titanium dioxide extraction industry.

The advent of third-generation hydrochloric acid extraction technology has propelled Kunchai Technology from a latecomer in the titanium dioxide manufacturing industry to a leading player, establishing itself as the optimal alternative to imported titanium chloride in terms of both quality and cost-effectiveness.

 

A dialogue giant, solidifying its position as a leading national enterprise in the industry.

 

In February 2023, at the 27th China International Coatings Show held in Guangzhou, Kunchai Technology unveiled a series of titanium dioxide products manufactured using the world’s first extraction-based chlorination process. At the end of March, at the European Coatings Show in Nuremberg, Germany, these products once again drew widespread attention, securing expressions of intent for in-depth collaborations with numerous renowned coating manufacturers.

In 2022, Zhengtai New Materials, a core subsidiary of Kuncai Technology, announced the commissioning of a titanium dioxide production project employing the hydrochloric acid extraction process, with an annual capacity of 200,000 tons. The third-generation hydrochloric acid extraction technology has been successfully implemented in mass production and is now being sold at scale, marking not only a new phase of growth for Kuncai Technology but also a landmark milestone in the industrialization of China’s hydrochloric acid‑based titanium dioxide production process. Once this capacity reaches full scale, Chinese companies will be able to meet the high‑end demand for titanium dioxide in both the domestic market and increasingly larger overseas markets, further strengthening China’s position as a major global producer of titanium resources.

According to technicians at Kunchai Technology, the titanium dioxide and iron oxide products produced via the extraction‑based chlorination process for titanium white pigment ensure high purity of the main product, enable comprehensive utilization of by‑products, and outperform both the traditional sulfuric acid and chlorination methods in terms of performance, purity, and whiteness. Compared with these conventional approaches, the extraction‑based process for producing titanium white pigment not only yields high‑purity titanium oxychloride but, thanks to its specialized treatment, generates zero solid waste during production, offering a distinct environmental advantage. The resulting products exhibit superior opacity and weather resistance, as well as enhanced corrosion and UV‑resistance, effectively extending their service life. They can thus be regarded as white pigments with exceptionally outstanding performance on the global market today.

With a production capacity of 200,000 tons, Kuncai Technology has already crossed the threshold to become one of the world’s top ten titanium dioxide producers. Building on its existing commissioned capacity, the company is advancing a 600,000‑ton‑per‑year expansion project; upon completion, total capacity will reach 800,000 tons, positioning it to surge into the global top five and establishing it as the world’s largest single-site titanium dioxide plant.

 

Undoubtedly, Kuncai enjoys a significant advantage in both pricing and costs, which will serve as one of its key assets as it competes with industry giants on the global stage. What fills Kuncai’s team with pride, however, is that its third-generation hydrochloric acid extraction technology remains firmly in-house—virtually impossible for competitors to replicate.

 

Meanwhile, as part of the drive to digitally empower the chemical industry through the industrial internet, the company is deploying an industrial‑internet platform—Zhengtai Interconnect being one of its key milestones. The Zhengtai Chemical Platform will also provide long‑term, effective services to both upstream and downstream players in the sector, enabling intelligent manufacturing, online transactions, and transparent, visualized service delivery. Kuncai Technology is accelerating its digital transformation through concrete actions, fostering innovative enterprise development and building a digitally driven industrial cluster with global competitiveness.

 

Afterword:

 

Taking the present as our starting point, Kuncai plans to establish production capacities of 50,000 tons per year for pearlescent materials and 30,000 tons per year for synthetic mica. Meanwhile, its wholly owned subsidiary, Zhengtai New Materials, aims to build production lines with annual outputs of 800,000 tons of titanium dioxide chloride, 800,000 tons of iron oxides, and 30,000 tons of nano‑titanium dioxide. With each steady step and every drop of hard work, we will fortify our core competencies and cultivate enduring strength, thereby solidifying Kuncai Technology’s position as a leader in the industry.

 

Looking ahead, Kunchai Technology will secure the primary raw material supply for Zhengtai New Materials through the extraction, processing, and production of mineral resources, while also providing key raw materials for Kunchai Pearl Pigment to address procurement‑cost challenges. Meanwhile, Zhengtai and Kunchai supply titanium dioxide and pearlescent pigments to Ziniu, enabling the production of high‑solid‑content color masterbatches, thereby forming a tightly integrated, end‑to‑end industrial chain. In addition, through Zhengtai Interconnect, the company is progressively transforming its information network into a digital industrial‑chain platform, significantly accelerating the pace of digital empowerment in the chemical sector. By leveraging digital operational tools, it aims to enhance operational efficiency, reduce costs, and strengthen its competitive edge in both the industry and the market, proactively positioning itself to meet an array of emerging challenges.