VSMPO-Avisma is tightening control over the manufacturer of the master alloy for titanium alloys

24.11.2010 — News

The VSMPO-Avisma Corporation JSC is planning to increase its existing stock of Uralredmet JSC shares to the blocking shareholding. After purchasing of 7% shares in the near future, the corporation will own 25.98 % of shares.

Uralredmet JSC is located in Ekaterinburg suburbs. The core product of the company is vanadium-based master alloy for titanium alloys. Uralredmet has been included in the list of established suppliers of General Electric and Timet. At present, 95% of the products are supplied to VSMPO-Avisma.

As the representatives of the corporation informed "RusBusinessNews", VSMPO-Avisma has closed down its own production of master alloys and switched over to supplies from Uralredmet for the reasons of economic feasibility. To be able to monitor the quality of purchased master alloys, the corporation executives made a decision to buy out the blocking stake of Uralredmet and have their representative in the Board of Directors of the company.

In September 2010, VSMPO-Avisma acquired 18.98% of the Uralredmet shares from Romtex Co Limited. Experts appraised this stake at 5.4 million US dollars.