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09 2020
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Toho Titanium mulls further sponge Ti output cuts

Jun.1 2020      Source:argus

Keywords:spnge ti

The Covid-19 pandemic has taken has taken its toll on the aircraft industry, which is scaling back production of commercial planes in the face of a slump in global air travel demand.

Toho Titanium said it has been notified by some customers to reduce delivery volumes of contracted sponge titanium used in aircraft manufacturing. Demand from other manufacturing sectors is also expected to remain sluggish over the months to come, it added.

The company has reduced sponge titanium production by 10pc since May but is considering whether to curb output further amid falling demand. It has a combined 25,200 t/yr of sponge titanium production capacity at its Chigasaki and Wakamatsu plants in Japan, in addition to its joint-venture plant in Saudi Arabia.

Toho Titanium is negotiating with Saudi sponge titanium venture partner Advanced Metal Industries Cluster to review plans for the Yanbu plant, which started commercial production in September last year. The Advanced Metal Industries Cluster and Toho Titanium Metal venture was originally targeting to increase output to a full 15,600 t/yr by the end of 2020.

Toho Titanium is a 50.38pc-owned subsidiary of Japanese resource firm JXTG. The company is planning to start output at a new nickel powder production line at Wakamatsu in April next year.

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