(Yicai Global) Dec. 18 -- CNNC Hua Yuan Titanium Dioxide will provide international paint behemoth AkzoNobel with titanium white powder over the next seven years, CNNC said in a statement yesterday.

CNNC shares [SHE:002145] jumped 2.31 percent to close at CNY4.43 (63.2 US cents) this morning after having risen 5.5 percent at one point soon after opening, but their price has remained static this afternoon.

CNNC's Anhui GISI Titanium Dioxide unit recently signed a framework supply agreement with the Dutch paint and performance coating giant, per the statement, which included no projection as to the quantities the contract will involve, saying only that the customer will determine detailed amounts and specifications, with the price to vary at any time based on market changes.

Titanium white powder refers to titanium dioxide (chemical formula: TiO₂), which is a naturally occurring white inorganic mineral used in coatings, plastics, papermaking, printing inks, chemical fiber, rubber and cosmetics, and of which worldwide annual production is over 4 million metric tons, according to the website of The National Titanium Dioxide Company.

Formed in 1989, CNNC is China's leading titanium dioxide powder producer. The company's revenue from sales of the white powder reached CNY1.6 billion (USD228.3 million) in the first half.

China produces 40 percent of the global supply of the pigment to make it the world's largest source.

Editor: Ben Armour