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"VSMPO-Avisma" future difficulties are not afraid

2 July 2014

Management of the corporation «VSMPO-Avisma» says that it is completely ready for the anticipated problems with respect to the titanium raw material supply from Ukraine, which are directly linked to established recently Ukraine-Russia relations. This is despite the fact that almost the entire volume of ilmenite, from which the titanium comes Ukrainian mining and processing plant, and Volnogorsk Irshansky. However, while that Ukrainian companies continue to supply the raw materials corporations, but also for the possible termination of partnership corporation prepared to fully filling out their own storage ilmenite reserves which according to preliminary calculations provide guidance factories Corporation continuous work for 8 months.

This time is sufficient to provide for new partners and receive alternative products from Africa or Vietnam. Of course, such a plant will be more expensive and a half times, which, however, does not push up the price of titanium sponge at an unattainable height, as if considering the cost structure, «VSMPO-Avisma» ilmenite content is only 2%. corporate executives say that today the world market has no shortage of ilmenite, there is even an oversupply, and Russia itself is the owner of the deposits of titanium raw materials. Altai deposits of ilmenite content is not as impressive as the Ukrainian, but they can still provide the raw material independence of the Russian corporation on foreign supplies. As a confirmation, not so long ago the installation of vertical forging equipment for crushing sponge titanium for «VSMPO-Avisma» was held at the «Uralmash» enterprise.

Meanwhile, the largest company in the field of aircraft construction, «the Airbus» talking of breaking agreements «VSMPO-Avisma» because of impending sanctions from the EU towards Russia. However, such a move is fraught with rather big penalty for the initiator of early termination of the contract, and the search for another provider will take a lot of time, so that the CEO of the Russian Corporation believe that good sense will prevail in the end. Long-term contract between the companies was signed five years ago, it cost 4 billion. USD, and «VSMPO-Avisma» the agreement up to 2020 to be a major supplier of titanium mill products and stampings.

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