Osaka Titanium Technologies Eyes Full Capacity Sponge Operation

Osaka Titanium Technologies increases the sponge titanium operation to full capacity level by the end of March 2011. The operation rate is around 80% of annual 26,000 tonnes of output capacity excluding idled small furnace. The firm increases the production to meet recovering demand. The firm plans to make 22,000 tonnes of sponge titanium in fiscal 2010 ending March 2011, which is 50% higher than fiscal 2009.

World titanium demand recovers recently under airplane demand recovery and progressed inventory adjustment. Titanium alloy makers increase sponge titanium consumption to make alloy for airplane when scrap availability gets tight and the scrap price increases.

Japanese buyers also increase the ingot and rolled titanium purchase volume. Osaka Titanium Technologies’ sponge titanium shipment increases at higher pace than expected at the beginning of fiscal 2010 and the firm reduces the inventory to meet the higher demand.

The firm finished first phase of the sponge making capacity expansion at Amagasaki plant in Hyogo in October 2008 to increase the capacity by 8,000 tonnes to annual 32,000 tonnes. However, the production was only 15,000 tonnes in fiscal 2009, which was 47% of the capacity.

The firm stopped the operation of 5 tonnes furnace in first half of 2009 under major production cut. The firm planned 18,000 tonnes of production or 69% of operation rate at annual 26,000 tonnes of capacity base for fiscal 2010. However, the firm increases the plan to meet higher demand while the firm finishes the second phase expansion in April 2011 to increase the capacity by 6,000 tonnes to annual 30,000 tonnes level.

The firm also renews idled 5 tonnes furnace to restart in April 2011. After the series of the expansion, the sponge output capacity increases to annual 38,000 tonnes in July 2011, which is 46% higher than current level.