Toho Titanium to Expand Sponge Output by 25% at Wakamatsu

Toho Titanium increases sponge titanium output capacity by around 25% to 15,000 tonnes per year at Wakamatsu plant in Kitakyushu, in fiscal 2012 ending March 2013, said the president Takeshi Kurushima at a press conference held on Thursday. The total sponge titanium output capacity reaches 25,000 tonnes including Chigasaki plant. The firm increases the capacity to meet recovering the demand.

Toho Titanium adds reduction furnace at the first line of Wakamatsu plant just after the plant started commercial operation in April. With the expansion, the firm tries to operate at just more than 15,000 tonnes per year of annual output capacity in fiscal 2012 at the plant, said Mr. Kurushima.

The firm plants to make sponge titanium at 8,000 tonnes at Chigasaki plant and 6,000 tonnes at Wakamatsu plant in fiscal 2010. The firm plans to increase the operation rate of Wakamatsu plant from current 50% utilization to 75% in early fiscal 2011 and 100% in second half of fiscal 2011.

The firm increases the output to 12,000 tonnes at Chigasaki plant and to slightly more than 10,000 tonnes at Wakamatsu plant in fiscal 2011.

Titanium sponge demand decreased since late 2008. Toho Titanium’s sponge titanium output decreased by 44% to 7,700 tonnes in fiscal 2009 from fiscal 2008. However, the demand increased for aircraft engine. The demand is expected to keep recovering when Boeing 787 delivery is expected to be on track.