20 March 2013
Group DF to launch new titanium production at ZTMC and strengthen Ukraine’s positions on the global markets
The Group DF group of companies will build new titanium slag and titanium sponge productions at Zaporizhya Titanium and Magnesium Combine (ZTMC, LLC). This will strengthen Ukraine’s positions on the global titanium markets. The news was announced by Chairman of the Group Supervisory Council of Group DF Dmitry Firtash at a press conference on ZTMC.
“Our investment program envisages construction of two new productions. The first one is titanium slag production with the capacity of 150 thousand tons per year. The second one is titanium sponge production with the capacity of 40 thousand tons per year (phase 1 – 20 thousand tons, phase 2 – another 20 thousand tons). In this way we’ll strengthen Ukraine’s positions on the global titanium markets”, announced Mr Firtash.
According to the businessman, on the first stage of implementation of the investment program which was agreed with the State Property Fund, Group DF’s investments into ZTMC will amount to USD110mln. Of that sum, USD63.5mln will be used directly for the construction of the new titanium slag production facilities. Moreover, first stage of the project will also include a feasibility study for construction of a high-quality titanium sponge production.
In 2012, ZTMC produced 44.6 thousand tons of titanium slag (including 20.2 thousand tons of commodity slag) and 10.3 thousand tons of titanium sponge. Group DF expects that its new titanium slag production facilities will increase Ukraine’s share in the global titanium slag production from the current 0.66 percent to 4 percent.
Following competition of construction of the second phase of the new titanium sponge production facilities, ZTMC’s combined titanium sponge production capacity will increase to 40 thousand tons per year. This will potentially allow Ukraine to increase its share in the global titanium sponge production from the current 5 percent to 14 percent. As the result, Ukraine may become the top-three global player on this high-technology market.
“We believe that titanium is the future of the global industry, and that’s why we invest in it. I’m convinced that ZTMC can make Ukraine a major global titanium player”, explained Mr Firtash. “China started developing its titanium program only 10 years ago, but now it controls about one third of the global titanium sponge market. Had a private investor come to ZTMC earlier, today Ukraine could have also been a major global player”, added Mr Firtash.
At the press conference Mr Firtash emphasized that investments in ZTMC are part of Group DF’s USD2.5bln titanium sector development programme.
“This programme also includes significant investments into titanium mining and titanium dioxide production. We are already developing a plan for construction of a new titanium dioxide production at Crimea TITAN. We’ve developed investment programs for other producers, and investments will be implemented on all titanium assets. With the creation of a powerful vertically integrated titanium holding, Group DF aims to transform the landscape of Ukraine’s titanium sector. We have ambitions, strategy, resources, people and expertise to build a globally competitive holding. Only through a single vertically integrated holding Ukraine’s titanium industry can compete on the global markets.”