Ellington

RTI International Metals Inc. today announced both plans to supply titanium products "that support the production of the Airbus family of commercial aircraft, including the A380 and the A350 XWB programs" and to build a titanium sponge plant in Hamilton, Miss., crediting Gov. Haley Barbour in their press release, which states in part:

To support the Company's growth needs, RTI also announced its intention to build a premium-grade sponge facility in Hamilton, Mississippi. Projected cost of the new sponge facility and related expansions is $300 million, which is in addition to the previously-announced $100 million facilities expansion. The plant will have a total annual production capacity of up to 20 million pounds of titanium sponge. The Company projects that the facility will begin operations in 2010 and ramp up production over time to support the new agreement with Airbus announced today, as well as the Company's recently announced $2 billion contract extension with Lockheed Martin Aeronautics Company for the F-35 Joint Strike Fighter ("JSF") program.

Engineering design and planning for the plant is near completion and the Company expects to commence construction in the fourth quarter of 2007. The Company intends to locate the sponge facility contiguous to a Tronox Incorporated facility, which will supply titanium tetrachloride, the starting material for sponge production. In selecting the greenfield site in Mississippi, Ms. Hickton stated: "We are delighted with the partnership we have secured with Tronox, as well as being extremely pleased with the incentives offered to us by the State of Mississippi and the support of Governor Haley Barbour to bring new industry to the state."

The sponge plant project will be built in conjunction with RTI's previously announced plans to expand the Company's melting, forging, and rolling facilities to meet these contract demands. The projects in total will provide RTI the ability to diversify its sourcing of raw material and support the Company's growth plans. Mill product production capacity will increase from 16-17 million pounds in 2007, to 22-23 million pounds in 2008, up to approximately 36-37 million pounds when all the projects are completed. Given the Company's strong cash position, RTI currently anticipates that all the expansion plans to support these contracts will be funded by cash on hand, operating cash flow, and borrowing capacity through an expanded credit facility.

Dawne Hickton commented: "This sponge plant investment, as well as our previously announced expansions worldwide, reflect our belief that the long-term demand for aerospace grade titanium remains strong and requires ongoing investment to capitalize on these opportunities. We have always approached the investment in a sponge plant conservatively. We anticipate consuming 100% of our sponge production internally, while continuing to globally source a substantial portion of our sponge requirements as evident from our previously-announced, long-term supply agreement with Sumitomo Sitix Corporation. With over $3 billion in projected future revenue secured through the additional Airbus and JSF contracts, the time has come to take this step and move RTI to a higher level of production capacity. Overall, the prudent investments we are making now to expand our facilities across the globe are expected to drive profitable growth and enhance shareholder value."

Previous Comments

ID

95704

Comment

Well, isn't that special? A big ole' announcement crediting Haley, held until---or should I say, released right before the November elections!!!

Author

blu_n_a_redstate

Date

2007-09-17T15:21:38-06:00

ID

95705

Comment

Crap. If he was "holding it" or should we say "held it" until right before the November election (a month and a half away), it would have been released around Halloween. Trick or Treat, y'all.

Author

Rex

Date

2007-09-17T15:28:28-06:00

ID

95706

Comment

Yeah, I don't think that's true, likely. Where is Hamilton anyway?

Author

DonnaLadd

Date

2007-09-17T15:37:00-06:00

ID

95707

Comment

Actually, there are two: one in Benton County and one in Monroe County. Both in the northeast corner of the state not far from tupelo.

Author

Rex

Date

2007-09-17T15:44:12-06:00

ID

95708

Comment

I believe its between Columbus and Aberdeen - the Golden Triangle area.

Author

Puck

Date

2007-09-17T15:45:50-06:00

ID

95709

Comment

it would have been released around Halloween --Rex An October Surprise??? Nope, Nope, Nope!!! Would have been too obvious!!!

Author

blu_n_a_redstate

Date

2007-09-17T15:47:04-06:00

ID

95710

Comment

Tupelo ... Jamie Franks and Daily Journal country ... Hmmmm ... Y'all just a bunch of damn conspiracy theorists, that's all you are.

Author

DonnaLadd

Date

2007-09-17T15:53:29-06:00

ID

95711

Comment

Am I the only one who wanted to know what a titanium sponge was? From Wikipedia: The processing of titanium metal occurs in 4 major steps:[24] reduction of titanium ore into "sponge", a porous form; melting of sponge, or sponge plus a master alloy to form an ingot; primary fabrication, whereby an ingot is converted into general mill products such as billet, bar, plate, sheet, strip and tube; and secondary fabrication of finished shapes from mill products. Because the metal reacts with oxygen at high temperatures it cannot be produced by reduction of its dioxide. Titanium metal is therefore produced commercially by the Kroll process, a complex and expensive batch process. (The relatively high market value of titanium is mainly due to its processing, which sacrifices another expensive metal, magnesium.[5]) In the Kroll process, the oxide is first converted to chloride through carbochlorination, whereby chlorine gas is passed over red-hot rutile or ilmenite in the presence of carbon to make TiCl4. This is condensed and purified by fractional distillation and then reduced with 800 °C molten magnesium in an argon atmosphere.[6] A more recently developed method, the FFC Cambridge process,[25] may eventually replace the Kroll process. This method uses titanium dioxide powder (which is a refined form of rutile) as feedstock to make the end product which is either a powder or sponge. If mixed oxide powders are used, the product is an alloy manufactured at a much lower cost than the conventional multi-step melting process. The FFC Cambridge Process may render titanium a less rare and expensive material for the aerospace industry and the luxury goods market, and could be seen in many products currently manufactured using aluminium and specialist grades of steel.

Author

LatashaWillis

Date

2007-09-17T16:25:16-06:00

ID

95712

Comment

I'm still not sure I know. ;-) (I admit: I looked it up, too.)

Author

DonnaLadd

Date

2007-09-17T16:27:25-06:00

ID

95713

Comment

Titanium sponge! Oh, I though you meant the sponge.... My bad. Elaine is so sad!

Author

pikersam

Date

2007-09-17T16:40:38-06:00

ID

95714

Comment

I'm still not sure I know. ;-) I'm no expert, but based on what I read, titanium sponge is just a porous form of the metal. I guess the plant will ship the metal to other factories to be processed further. The best analogy I can come up with is a flour mill that then ships the flour to food manufacturing plants. Have you ever watched "How It's Made" on the Science Channel? LOVE IT!

Author

LatashaWillis

Date

2007-09-17T16:50:59-06:00

ID

95715

Comment

Titanium sponge! Oh, I though you meant the sponge.... My bad. Elaine is so sad! Man, you just wanted an excuse to stick that in here. LOL In my case, I first thought of the pads you use to scrub your pots with. :-P

Author

LatashaWillis

Date

2007-09-17T17:00:22-06:00

ID

95716

Comment

Guilty as charged LW! In my case, I first thought of the pads you use to scrub your pots with. :-P LW Those come from steel sheep. :-)

Author

pikersam

Date

2007-09-17T18:54:43-06:00

ID

95717

Comment

I thought I was finished with science class when I graduated high school and college.

Author

golden eagle

Date

2007-09-17T19:53:28-06:00

ID

95718

Comment

I thought I was finished with science class when I graduated high school and college. Didn't your teachers ever tell you that learning is a lifelong process? LOL

Author

LatashaWillis

Date

2007-09-17T21:05:32-06:00

ID

95719

Comment

I think I skipped that day.

Author

golden eagle

Date

2007-09-18T07:28:13-06:00

ID

95720

Comment

I am glad, though, that Mississippi is getting this facility. This, the SteelCorr facility in Columbus and the emerging polymer science industry in south Mississippi will bring--and perhaps, keep--some brain power in this state.

Author

golden eagle

Date

2007-09-18T07:32:49-06:00

ID

95721

Comment

The article states that these folks have the "intention" to build this plant in MS. I'm sure everyone knows about "intentions" and most of us have one. This is too close to election time to think of anything but another Barbour political game. After the election and if he is re-elected, the Co. will then find some reason not to follow through as announced. Think about it.

Author

justjess

Date

2007-09-18T09:25:23-06:00