Dec 15 2009
RTI International Metals, Inc., (NYSE: RTI), announced today that it has determined to indefinitely idle plans to construct a titanium sponge facility. In addition, RTI has also entered into two additional long-term titanium sponge supply agreements with Toho Titanium Co., Ltd. and OSAKA Titanium technologies Co., Ltd. (OTC), both of Japan.
Dawne S. Hickton, Vice Chairman, Chief Executive Officer, and President commented, “Taken together with our existing long-term agreement with OTC, which runs through 2016, these contracts, which commence in 2012 and 2013, will provide to RTI a cost-effective source of titanium sponge from proven suppliers through 2021 with volume flexibility that we believe will adequately support our long-term titanium supply needs.”
The Company’s decision to idle construction affects earlier plans to build a $300 million titanium sponge plant in Hamilton, Mississippi. As a result, RTI will incur asset impairment and related charges in the range of $65 million to $75 million.
RTI previously filed a complaint in the United States Bankruptcy Court for the Southern District of New York against Tronox, LLC challenging the validity of a titanium tetrachloride supply agreement related to the titanium sponge project in Mississippi. The Company believes its claims are meritorious, but pending the outcome of this litigation, additional contractual expenses could range from zero to approximately $36 million.
Source: http://rtiintl.com/