Osaka Titanium Confirms Sponge Plant Expansion

Osaka Titanium

Japan's Osaka Titanium Technologies has announced a significant investment of ¥33 billion ($225 million) in its Amagasaki plant, aiming to boost its titanium sponge production capacity by 25%. The expansion will increase the plant's annual capacity from 40,000 to 50,000 tons, with construction slated for completion by the end of March 2028. The planned investment has risen by 10% from the initial estimate, a change attributed to the higher costs of construction materials.

The decision to expand comes in response to heightened demand from the aerospace industry. As existing fleets near the end of their service lives and more wide-body aircraft are being constructed, the need for titanium sponge is expected to grow. This move also addresses the current tight supply of titanium sponge, as manufacturers seek alternative suppliers to reduce dependence on Russia’s VSMPO-Avisma.

An Osaka Titanium representative noted that the price of high-grade titanium sponges is unlikely to decrease in the near future. The expansion is partially funded by a government subsidy of up to ¥8.04 billion, reflecting Japan's strategic designation of key raw materials used in aviation. Despite the impact of Typhoon Shanshan, which struck Japan on August 29, Osaka Titanium reported that its production and shipments have not been disrupted.