Toho Titanium Eyes Sponge Output Reduction in F2010

Toho Titanium may decrease titanium sponge production at Chigasaki plant, Kanagawa, Japan in fiscal 2010 ending March 2011 if global economy and titanium demand don’t recover. Takeshi Kurushima, the president of Toho Titanium, referred to the possibility at a press conference on 6 November. Titanium demand is entering adjustment phase when world economy becomes sluggish and airplane makers delay new craft production. Toho Titanium plans to start sponge production at its new plant, Wakamatsu plant, Fukuoka, Japan in 2010. Mr. Kurushima also said the firm might postpone construction of an additional productive line at Wakamatsu plant in fiscal 2012 watching the market condition.

Toho Titanium supposes that titanium sponge demand may decrease in fiscal 2009 compared with fiscal 2008 since Boeing of USA delays production of its new aircraft, B787. On the other hand, the firm expects the demand could turn upward again in the case that B787 production runs smoothly and world economy recovers stability.

Toho Titanium won’t reduce sponge output at Chigasaki plant by December 2009 when Wakamatsu plant starts operation. The firm doesn’t change operation schedule of Wakamatsu plant, too. However, if sponge demand maintains weak in and after fiscal 2010, the firm might decrease sponge production at Chigasaki plant at some degree.

Titanium sponge output capacity of Chigasaki plant is 16,000 tonnes per year. Wakamatsu plant’s initial capacity is set at 12,000 tonnes per annum and scheduled to become 24,000 tonnes by expansion.