OSAKA Titanium Technologies to Construct New Plant in Osaka

OSAKA Titanium Technologies announced on Monday the firm establishes a new plant to melt titanium ingots in Kishiwada City, Osaka, Japan and raises its sponge titanium output capacity at Amagasaki plant in Hyogo, Japan to 41,000 tonnes per annum from originally planned 38,000 tonnes. Both plants will start full shipment in October 2009. Along these plans, the firm will increase its 3-year capital expenditure to total 65 billion yen for fiscal 2007-2009 ending March 2010 from previously planned 51 billion yen.The new melting plant will be constructed on a site of 69,412 square meters in Kishiwada, Osaka. OSAKA Titanium Technologies will acquire the site with 4 billion yen at the end of March 2008. The new plant will be equipped with productive infrastructures including electricity accesses and drainage systems with 2.3 billion yen capex.The building and productive facilities of the new plant will be constructed at 4.7 billion yen capex. The firm plans to introduce 2 vacuum arc remelting (VAR) furnaces in the new plant, one of which the firm originally planned to introduce in Amagasaki plant. Each VAR furnace has output capacity at 1,500 tonnes per year. One furnace will be used for domestic shipment and another for titanium alloy ingot applied to airplanes. OSAKA Titanium Technologies’ titanium ingot capacity will total to 10,000 tonnes per year.As to Amagasaki plant, the firm reviewed the output expansion plan and decided to raise the capacity from current 24,000 tonnes per annum to 41,000 tonnes by October 2009. The capex is 3.6 billion yen.In Kishiwada, a research building for new products will be also established with 1.4 billion yen capex. New product plants will be integrated into Kishiwada site such for high-purity titanium, titanium powder, silicon oxide and photocatalyst by August 2009. After the transfer of the plants, in Amagasaki site, a pilot plant for a new refining method of sponge titanium will be constructed in mid 2009.