Toho Titanium to Raise Sponge Production in 2011

Toho Titanium raises titanium sponge production at Wakamatsu plant in Fukuoka, Japan and Chigasaki plant in Kanagawa, Japan though the firm has recently continued sponge output reduction. The firm plans to raise the operating rate to 100% at Wakamatsu plant in October 2011 while to 90-100% at Chigasaki plant in December 2011. Titanium demand shows a recovering sign for airplane and industrial equipment. The firm also plans to increase titanium ingot output step by step at Yahata plant in Fukuoka and Chigasaki plant.

Wakamatsu plant started commercial production of titanium sponge in April 2010 with output capacity at 1,000 tonnes per month. The firm plans to increase the output to 750 tonnes per month in April and 1,000 tonnes per month in October though the operation was kept at 500 tonnes per month. Toho Titanium also schedules the capacity expansion by 30% to 1,300 tonnes per month in April 2012.

Chigasaki plant increases sponge production to 810 tonnes this month. The operating rate improves to around 70% against the capacity of 1,200 tonnes per month. Chigasaki plant is scheduled to increase sponge production step by step and reach 1,100 tonnes per month in December.

Titanium demand has weakened since 2009 due to delivery delay of new model airplane Boeing 787 or capex slowdown for chemical and other plants. Along the market decline, Toho Titanium implemented output reduction by 15% at Chigasaki plant in and after January 2009. The reducing rate was widened to 40% in April 2009 and 55% in October 2009.

Sponge export volume is currently increasing for airplanes. As for industrial use, approximately 6,000 tonnes of titanium tube was ordered for a desalination plant in Saudi Arabia in 2010. The demand seems recovering.