Toho Titanium Expand Sponge Titanium Capacity for More Export

Toho Titanium tries to expand the sponge titanium output for next growth after the firm launched new titanium ingot plant in Yahata, Fukuoka in April. The president Kazuharu Kurushima said the construction work for new sponge titanium plant of Wakamatsu in Fukuoka is in line with the schedule. He expects the new sponge plant could expand the firm’s export ability for airplane and other applications. Mr. Kurushima said Chinese makers could take more time to make high grade sponge titanium while some industry interests concern oversupply. However, he expects expansions by Titanium Metals Corporation and Allegheny Technologies Incorporated could impact on the supply balance in certain level in and after 2009. Mr. Kurushima said the firm posted lower profit for April-June from same period of 2007 due to lower price for sponge titanium, higher yen rate and higher cost for investment. Mr. Kurushima sees the demand peaked out due to slower worldwide economy while Boeing’s delivery delay for Boeing 787 jetliner, which consumes more than 100 tonnes of titanium per unit. He expects the demand could recover around 2010 when Boeing tries to improve the delivery to more than 10 units per month.