Toho Titanium to Raise Sales Ratio of Chemical and Electronic Products

Toho Titanium aims to increase sales ratio of the catalysts & chemicals business unit to one third of the firm’s whole revenue. The firm tries to stabilize its financial condition which is now strongly affected by titanium business in response to large-lot consumers’ industries such as airplane.

Toho Titanium’s catalysts & chemicals business unit involves propylene polymerization catalyst (THC catalyst) used to process polypropylene, and high purity titanium dioxide and ultra fine nickel powder used as electrodes or dielectrics of multi layer ceramic capacitor (MLCC).

The business unit’s sales for third parties increased by 29% to 2.15 billion yen for April-June 2010 compared with a year earlier. The business unit gained 415 million yen of operating profit for April-June though titanium business unit posted operating loss.

Market demand for THC catalyst has recovered mainly from emerging countries including China since the deterioration in the second half of fiscal 2008 (October 2008-March 2009). Toho Titanium expects the demand would not upturn sharply in fiscal 2010 but could keep the level as high as in fiscal 2009.

Market demand has also recovered for ultra fine nickel powder and high purity titanium dioxide along the output upturn of MLCC. Toho Titanium is now expanding output capacity of ultra fine nickel powder to follow favorable demand growth.