Economy 2024-03-15T04:56:53+02:00
Ukrainian news
Group DF Titanium Business Reduces Production Of Ilmenite Concentrate By 27% To 103,600 Tons In 2022

Group DF Titanium Business Reduces Production Of Ilmenite Concentrate By 27% To 103,600 Tons In 2022

Group DF, ilmenite concentrate, titanium business

In 2022, compared to 2021, Group DF's titanium business reduced its production of ilmenite concentrate by 27% to 103,600 tons.

This is stated in the message of the press service of Group DF, Ukrainian News Agency reports.

Also in 2022, the titanium business of Group DF reduced production of ilmenite ore by 36.8% to 1,798 million cubic meters.

It is noted that despite the fall in production volumes, the enterprises of the titanium business of the group for the year almost doubled the payment of taxes and fees to budgets of all levels - their volume increased by 49.3% to UAH 185.4 million.

"The production results of the titanium business were extremely negatively affected by the war and its consequences: a global recession in many industries and a corresponding fall in global demand for paints, varnishes, plastic products, furniture, etc. The concentrate, which is produced on our GOKs, is the basic raw material for the production of titanium dioxide. Titanium dioxide, in turn, is a pigment and component for the production of paint materials, plastics. The decrease in pigment consumption in the world is associated with a decline in the construction industry in particular. The global recession and falling demand led to a significant drop in world prices for titanium products," said Oleh Arestarkhov, head of corporate communications at Group DF.

According to him, a significant decrease in production volumes was due to a halt or a significant decrease in production at the world's largest producers of titanium pigment dioxide - such as Venator, Kronos, Precheza, Chemours, Tronox.

"They have reduced capacity loads in line with reduced demand. It is very logical that the mining industry, which supplies raw materials for the manufacture of pigments, has "sagged" all over the world. Ukraine has not become an exception," said Arestarkhov.

According to him, the demand for titanium products in the world and the prices of titanium concentrate and titanium dioxide will be restored along with the recovery of leading economies.

At the same time, the production results of Group DF's titanium business in 2023 will directly depend on two interrelated factors: the timing of the end of the war in Ukraine and the timing of the global economy's exit from recession.

"As soon as the European economy begins to grow, this will mean an increase in demand for titanium concentrate and dioxide. Already, we are seeing a recovery in global titanium markets. There are certain indicators of Europe's exit from the crisis. This gives us the basis for increasing production volumes. We look with a certain optimism in 2023 and 2024. There is a tremendous potential of the market and a chance to change the role of Ukraine on it. With the accession to the EU, Ukraine will certainly claim the status of a new European titanium hub," said Arestrakhov.

As Ukrainian News Agency earlier reported, in January-June 2022, compared to the 1st half of 2021, the titanium business of Group DF reduced the production of ilmenite concentrate by 5.7% to 62,000 tons.

The Group DF titanium mining business includes two operating mining and processing enterprises (the Mezhyrichensk Mining and Concentration Plant and Valki Ilmenite) and two mining and processing plants under construction - Stremyhorodskyi Mining and Processing Plant (Zhytomyr Region) and Motronivskyi Mining and Processing Plant (Dnipropetrovsk Region).

The maximum design capacity of the Mezhyrichensk Mining and Processing Plant is 180,000 tons of ilmenite concentrate per year, and of Valki Ilmenite – 65,000 tons.

Group DF is a diversified international group of companies with businesses in 11 countries in Europe and Asia.

The main activities of the group are nitrogen, titanium and gas businesses.

Businessman Dmytro Firtash is the founder and owner of Group DF.

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