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First, Du Pont was a leader in the Titanium Dioxide industry possessing the highest capacity for use of the ilmelite chloride process. Two recent developments in the industry, sharp increases in the cost of rutile ore required for the sulfite based process and the heightened environmental regulations enacted against domestic sulfur based plants made the ilmelite chloride process more attractive. Du Pont had a competitive advantage in the ilmelite chloride process accounting for approximately 60% of the total market production in 1970. This advantage was strengthened by the fact that the number two producer, NL Industries, was highly leveraged and the other producers in the market were relatively much smaller...
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