"In 2016 we expect to maintain the previous year's level of total output equating to around 29 thousand tons. However, it should be noted that our production is not only concentrated at Avisma and VSMPO, today we have operations in Ukraine and in the USA — that is NF&M producing bars, billets, and wire for medical products and aerospace fasteners," said Oleg Leder.
In the face of the crisis, VSMPO-AVISMA shipped to its customers products worth USD 1.3 billion in 2015, Mr. Leder was quoted as saying in an interview with Novator corporate newspaper.
Nowadays, titanium is used in a wide range of industries from spacecraft building to medicine.
"However, it is the aerospace industry and all related sectors that constitute a larger part of the titanium market, even though there are the healthcare and manufacturing sectors”, remarked Oleg Leder. “The last one is still in a distressing plight, but we are persevering with our work in that sector, securing orders, albeit, on a small scale. In the difficult year of 2015, we managed to keep sales at an appropriate level in the aerospace industry. We are continuing to step up supplies to such companies as Boeing and Airbus. Over 11 thousand tons of products were ordered by and delivered to Russian businesses."
According to him, for the time being it is no easy task to find an industry where titanium wouldn't be required — this metal is needed everyplace due to its specific strength and corrosion resistance. So, VSMPO-AVISMA sees the medical market as a priority.
"From the perspective of the medical sector, the global titanium market is showing a steady growth unaffected by the crisis because people continue to take care of their health even in the worst of times. The aerospace market also follows an upward trend although over a five-year cycle. Conversely, the medical market has a steady year-over-year gain of 4-8%. Today the global market capacity is about four thousand tons of titanium, with us accounting for about 25 percent”, said Oleg Leder.
According to him, the corporation is currently contracted by such businesses as Johnson & Johnson, Biomet, Synthes, Orchid, Stealth, Zimmer, DePuy. VSMPO-AVISMA supplies medical-grade titanium all over the world. Medical-grade titanium certification requirements are tough in terms of the material purity, but they require no special properties like for aircraft engine manufacturing, explained Oleg Leder.
VSMPO-AVISMA is the world's largest producer of titanium, ingots and all titanium-alloys based semi-finished products, as well as large aluminum extrusions, semi-finished products of alloy steel, and nickel based heat-resistant alloys.
