Toho Titanium to Raise Sponge Production in 2H F2011

Toho Titanium estimates its titanium sponge production at around 10,500 tonnes for first half of fiscal 2011 ending in March 2012, increasing by 50% from the same period of fiscal 2010. Global titanium consumption has recovered in aerospace and plant industries. The company plans to raise the operating rate of Chigasaki plant in Kanagawa, Japan and Wakamatsu plant in Fukuoka, Japan in the second half of fiscal 2011 in order to meet the strong demand. The full-year sponge production is expected to reach originally planned 22,800 tonnes in fiscal 2011.

The demand for titanium sponge upturned in mid 2010. The consumption has steadily recovered in aerospace industry and other industrial fields. In late 2010, Japanese titanium fabricators succeeded in order receipts for titanium plates and welded titanium pipes those which will be adopted to a new desalinating plant in Saudi Arabia.

Toho Titanium plans to raise the operating rate along the demand recovery. Wakamatsu plant has started commercial production of titanium sponge in 2010 and kept the output at 750 tonnes per month. In and after October, Wakamatsu will enter full production at 1,000 tonnes per month. Chigasaki plant has also raised the operating rate step by step since January 2011. The sponge output is scheduled to reach 1,100 tonnes per month in December.

Toho Titanium’s annual sponge production is forecasted to exceed 14,800 tonnes of fiscal 2010 and mark the record high volume in fiscal 2011.