Toho Titanium Expects Soon Payback from New Plants in Kitakyushu

Takeshi Kurushima, president of Toho Titanium, Japanese major supplier of titanium sponge and ingot, said the firm focuses on smooth operation and sooner payback of a new titanium sponge plant in Wakamatsu area of Kitakyushu City, Fukuoka Prefecture, Japan and expanding equipment of an ingot plant in Yawata area of Kitakyushu City. He analyzed the world titanium demand maintains strong for the near future and Japanese titanium sponge suppliers are advantageous by their higher quality products among world titanium makers.Mr. Kurushima explained the world titanium demand is strong for airplanes and other usages. Airplane related demand recovered from the slump after the September 11 Terrorist Attacks on the United States in 2001 and is now strong even in BRICs countries. He also referred to the trend to lighten airplane body under which carbon fiber and titanium are more adopted per airplane.Toho Titanium plans to expand its titanium sponge capacity from current 16,000 tonnes per annum to 28,000 tonnes per annum by operation start of Wakamatsu new plant with an initial capacity of 12,000 tonnes per annum. Mr. Kurushima said the investment into Wakamatsu and Yawata plants is rather large scale and Toho Titanium seeks sooner payout by smooth operation of the plants along the original plan.Titanium makers carry out active capacity expansion recently worldwide, especially in China. However, Mr. Kurushima presented his view that overseas makers would take time to supply titanium sponge at a grade as high as Japanese. Toho Titanium has its original productive method and equipment based on the Kroll process.