Titan giant ready to leave its big market footprint

The Russian corporation last week signed a memorandum of understanding with Vinacomin for establishing a joint venture exploiting and processing titanium in Vietnam.

The memorandum of understanding was signed on the occasion of Vietnamese President Truong Tan Sang’s visit to Russia to enhance the comprehensive strategic partnership relation between the two countries.

“Vinacomin and VSMPO-AVISMA Corporation are interested in setting up on a parity basis a joint venture in Vietnam, that is expected to focus on establishing of high-tech, innovative, and environmentally-safe production capacities to process titaniferous minerals into value-added products,” VSMPO-AVISMA Corporation said.

VSMPO-AVISMA Corporation is the first supplier of titan for Airbus and the second for Boeing.
Meanwhile, Vinacomin is the biggest group exploiting natural resources and minerals in Vietnam. It is also one of three state-owned groups responsible for ensuring national energy security.

Through the cooperation with VSMPO-AVISMA Corporation, Vinacomin will have a chance to penetrate the international market, supplying processed titanium products for many global well-known manufacturers.

The Russian corporation and Vinacomin will further discuss details concerning the joint venture’s specific form, its activities, operation and obligations of the parties, terms of the deal and capital share, once Vinacomin gets a licence to develop titanium minerals in central Binh Thuan province.

The province is said to have a potential reserves of titanium. For many years, many domestic and foreign companies have been exploiting titanium in this province and export the raw material to international market.  This topsy-turvy exploitation forced the government to stop granting investment certificates to new titanium exploitation projects in Binh Thuan.

Moreover, the government ordered the Ministry of Natural Resources and Environment to make a careful study of titanium reserves in this province and map out an titanium exploitation long term plan.