Toho Titanium Gets Long Term Sponge Supply Contract with RTI International

Toho Titanium announced on Tuesday the firm signed long term supply contract of sponge titanium to RTI International Metals of USA. Toho Titanium supplies the metal for 20 years from 2012. The firm’s long term supply contract is second after Titanium Metals Corporation. RTI International Metals also signed long term contract with Osaka Titanium Technologies.

Toho Titanium has 16,000 tonnes of annual output capacity for sponge titanium in Chigasaki, Kanagawa. The firm also starts sponge titanium commercial production in Wakamatsu plant in Fukuoka in April 2010. The sponge titanium output capacity will be annual 28,000 tonnes.

However, Toho Titanium reduces the production at Chigasaki plant to around 540 tonnes per month due to slow demand. The production is expected to be 7,436 tonnes in fiscal 2009 ending March 2010. The outside sponge shipment is 4,100 tonnes in the year while the inner consumption is 3,300 tonnes. The Wakamatsu plant will start the operation at monthly 500 tonnes.