Investments

Uniti Ltd

Uniti Ltd is VSMPO-AVISMA and North-American titanium producer, Allegheny Technologies Incorporated, joint venture

 

 

 

 

 

In 2003 two world largest titanium manufacturers VSMPO-AVISMA and Allegheny Technologies Incorporated announced the establishment of commercially pure titanium of non-aerospace purpose producing and realization joint venture.

Uniti is aimed to support power, pulp and paper, chemical and petroleum refining sectors, desalination unit production, construction and architecture, automotive and transport industry, production of fast moving consumer goods and electronics international markets. The joint venture doesn't cover commercial aviation, defence and medicine sectors.

One of the reasons why Russian metallurgists interacted with American rivals and reoriented merchandising was the demand slump among aviation and aerospace corporations in the beginning of the 2000s.

Accretion of titanium demand is one of the most progressive world tendencies of 21 century. The demand for titanium production in the long-term is estimated to be determined by predictable massive structural changes and accelerated innovative development in defence-industry complex, aircraft- and shipbuilding, atomic energy, transportation and construction. Titanium is the basis of complex high-technology engineering and up-to date armament types. According to RF Ministry of Trade and Industry, Russian market aggregate demand for high-technology rolled titanium goods is to increase by 2020 up to 20 thousand tons, doubling the 2007 level  and considering exportation – up to 58 thousand tons  (27.6 thousand tons in 2007). Thus Russian ventures delivery to domestic market is to increase to 35% comparing to 29% in 2007.

Russia is among the world leaders of spongy titanium and titanium mill products manufacturing. Russian titanium sponge vendors not only cater domestic tastes but also export considerable number of the production competing with Japan and the USA. In addition, Russia doesn't really have its own ore and raw material source. All the titanium sponge material is supplied from Ukraine and Kazakhstan. The USA, European Union, Japan, China and others are the biggest titanium consumers.

Shipbuilding, especially, deep ocean technologies and marine engineering structures manufacturing for natural resource offshore production and hydrocarbon transport materials are the most fast developing sectors with high titanium demand. The shipbuilding strategy implementation presupposes 2.7 time titanium demand growth by 2020 in comparison with 2007 (2 tons versus 5.4 tons). Power engineering industry is also marked by titanium demand growth resulting from upcoming massive reconstruction of the atomic sector. Russian state power strategy for 2020 expects constructing 40 atomic power stations within Russian and 60 abroad. Thus titanium mill products demand in this area will grow up to 3 thousand tons (3.5 times in comparison with 2007) and its share in titanium consuming will reach 15% (versus 10.8% in 2007).