Toho Titanium Enlarges Sponge Output Cut Range to 40% in April

Toho Titanium plans to enlarge output cut range of titanium sponge in April at Chigasaki plant, Kanagawa, Japan to 40% compared with a year earlier. The firm has reduced sponge production by about 15% year-on-year since January 2009. However, sponge demand is plunging more than expected and the firm’s inventory is increasing due to global economy slowdown.

Titanium sponge production capacity at Chigasaki plant is approximately 1,300 tonnes per month. Toho Titanium plans to decrease the output to around 700 tonnes per month for April-September 2009 though the output was average 1,200 tonnes during April-September 2008. Titanium demand has sharply declined since autumn 2008 from airplanes and industrial usages such as seawater desalination plants.

Meanwhile, the firm plans to construct a new sponge plant in Kitakyusyu, Fukuoka, Japan and start commercial production at the end of 2009 or the beginning of 2010 as originally planned. However, capacity expansion of the new plant will be delayed by several years after titanium demand recovery.