VSMPO-Avisma will keep on using Ukrainian raw materials

29.07.2015 — News

SVERDLOVSK REGION

VSMPO-Avisma diversified its ilmenite supply sources (ilmenite is one of the most significant ores of metal titanium) to protect itself against political and economic risks, Mikhail Voevodin, General Director of the Corporation, informed Interfax.

During the Soviet and post-Soviet times, VSMPO’s ilmenite was supplied solely by Ukraine. However, after 2007, when the Nezalezhnaya mining plants faced production problems, the Urals-based Corporation started looking for other suppliers. At present, raw materials are being supplied by 10 suppliers from 10 licensed deposits.

"This year we are purchasing about 40% of the raw materials from Ukraine, 40% – from Australia and 20% – from other sources. We could purchase ilmenite from Vietnam; however, our technologists think that ilmenite supplied from Ukraine and Australia has the best quality. The quality of African ilmenite is also good, but the logistics expenses are slightly higher," M. Voevodin said.

He also noted that the Corporation can rely on its six-month reserve stock of raw materials, which will help it to avoid supply problems. The Corporation’s subsidiary located in Nikopol, Ukraine, operates smoothly, without interruption; no one interferes in its operation. The ilmenite production in Ukraine also runs smoothly, RusBusinessNews reports.

"There are some engineering and legal aspects, which should be discussed with the local authorities. We hope that next year we will be able to upgrade the existing facilities and move into the first stage of production," M. Voevodin states.