Titanium, a light, strong metal resistant to corrosion, has wide-ranging uses, from aircraft to desalination plants, electric power plants, and other applications. Group company Toho Titanium Co., Ltd. is engaged in the smelting of titanium, and leverages related materials and technologies to manufacture such products as catalysts (for propylene polymerization) and chemicals (e.g. materials for electrodes and dielectrics in multilayer ceramic capacitors).
Yamao Yasuji
President & Representative Director, Chief Executive Officer
Toho Titanium Co., Ltd.
For the Titanium Business, the impact of COVID-19 saw a precipitous drop in the number of airline passengers, and major curtailment in production activities coupled with inventory reductions in the supply chain led to an unprecedented drop in demand for titanium for use in aircraft, along with sluggish demand for general industry applications. Demand for semiconductor applications was strong. However, the Titanium Business continued to face a very difficult business environment. On the other hand, in the catalyst business our sales of the key propylene polymerization catalyst product were largely unchanged from the previous fiscal year, and the chemicals business also performed well due to a pickup in demand for telecommunications-related applications.
Yamao Yasuji
President & Representative Director, Chief Executive Officer
Toho Titanium Co., Ltd.
In the Titanium Business, a moderate recovery in demand for both aircraft and general industrial applications is expected, but a recovery to levels prior to COVID-19 may take several years. Long-term contracts revised with major overseas customer last year mean that we expect an increase in sales volumes, and we are planning to achieve an average 80% domestic utilization rate for titanium sponge. In the catalyst business, we expect to see continued strong demand for polypropylene, in spite of the residual impact of COVID-19. We expect the chemicals business to continue doing well on the back of strong demand for smartphones and automotive applications, as well as 5G-related demand, and the start of operation of the No. 4 nickel powder plant completed in April 2021 is expected to contribute to results in the second half of this fiscal year. Looking forward, we will pursue further business expansion in both the catalyst and chemical businesses targeting growth that exceeds market growth.
Toho Titanium Co., Ltd. has been conducting joint development of new titanium smelting technologies with a U.S. company, partially supported by the NEDO Strategic Energy Conservation Technology Innovation Program. As a result, this was determined to be a very promising technology in terms of economic efficiency, energy consumption, and in reducing CO₂ emissions, and this has been shifted to pilot-scale testing as of fiscal 2021. By introducing other technologies and measures based around this technology, we hope to achieve net zero CO₂ by 2050.
