VSMPO-AVISMA is prepared for possible disruptions of supplies from Ukraine

June 20, 2014, by Rostec

Ilmenite reserves are enough to ensure eight months of uninterrupted operation of the company’s plants

The VSMPO-AVISMA Corporation, the world's largest titanium producer, has prepared for possible disruptions of supplies of raw materials due to the crisis in Ukraine. Titanium reserves will last for eight months to ensure the uninterrupted operation of the company's plants

Today VSMPO-AVISMA relies on Ukrainian suppliers, the Volnogorsk and Irshansk Mining and Concentration Complexes, for supplies of almost 100% of its raw materials to produce titanium sponge (ilmenite).

Currently, both Ukrainian factories are supplying raw materials without interruption. However, in case of possible future supply disruptions due to the situation in Ukraine, VSMPO-AVISMA has already stockpiled raw materials by filling its warehouses with Ukrainian ilmenite as a precaution. RIA Novosti reports that "there are enough supplies to ensure the continuous operation of the corporation's factories for eight months," according to Company CEO Mikhail Voevodin.

Mikhail Voevodin emphasized that currently the market has been flooded with ilmenite from African, Vietnamese, and Australian companies. Russia also has a titanium ore deposit in the Altai Mountains, which can guarantee the full raw material independence of VSMPO-AVISMA from any foreign suppliers.

"We could possibly find alternative sources of raw materials from Vietnam or Africa, for example. Due to logistics, African raw materials are one-and-a-half times more expensive. However, this will not lead to a serious increase in the cost of titanium sponge, because within the corporation ilmenite accounts for only 2% of total costs," said CEO of AVISMA.

VSMPO-AVISM  is the world's largest manufacturer of titanium ingots, all kinds of semi-finished titanium alloys, as well as large extruded aluminum products, semi-finished products made of alloy steel and heat-resistant nickel-based alloys. It is a subsidiary of the Rostec State Corporation.