Osaka Titanium Technologies to Expand Sponge Production Cut

Osaka Titanium Technologies expands the production cut of sponge titanium to more than 50% from more than 40% level. The firm tries to adjust the production to meet slower demand when new airplane model launching delays, offshore rolled titanium makers are still in inventory adjustment and domestic rolled titanium makers reduce the operation with lower demand for plant equipments.

The firm expanded the sponge production capacity to annual 32,000 tonnes from 24,000 tonnes after new plant completed in Amagasaki, Hyogo in October 2008. However, offshore rolled titanium makers’ inventory increased after major strike at Boeing plant in September 2008. Osaka Titanium Technologies reduced the production by averaged 20% in October 2008-March 2009 and by 30% in January-March and expanded the production cut to more than 40% level or monthly 1,500 tonnes of production.

Boeing suspended test flight of new model, 787 in June while the model was planned to be marketed in 2009. The launch is expected to delay and the delay impacts on rolled titanium demand. Osaka Titanium Technologies expands the production cut to monthly 1,300 tonnes or more than 50% cut.