Sumitomo Titanium to Expand Sponge Titanium Capacity by 10,000T/Y

Sumitomo Titanium announced on Friday the firm expands the sponge titanium output capacity by 10,000 tonnes to annual 34,000 tonnes by July 2009 for 27.6 billion yen under the 3-year plan starting next year. The firm tries to expand the capacity to meet strong demand when the firm got 30% price hike for 2007 shipment to offshore rolled titanium makers, which represents wide hikes for 3 years in a row. The firm expands the output capacity by 8,000 tonnes by January 2009 and by 2,000 tonnes by July 2009. The firm builds new plant with electrolysis, reducing, crashing, sizing, chloride furnace and distillation tower next to existing plant. The firm increases the employees by around 60 for the new plant. The firm plans to use the own fund for the expansion. The president Masaaki Tachibana of the firm said the firm considers additional 2,000 tonnes expansion to annual 36,000 tonnes. The firm already started consultation with the users to brush up the idea including facilities. The firm already expanded the output capacity by 6,000 tonnes to annual 24,000 tonnes in March 2006. The firm could double the capacity from former 18,000 tonnes to 36,000 tonnes. The firm said the firm concluded the price hike negotiation with offshore users to increase the price by 30% for 2007 shipment when the users try to secure materials even at higher cost. The firm increased the price by 30% for 2005 shipment and by 20% for 2006 shipment. The sponge titanium price doubles in 3 years.