Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

VSMPO Plans $1Bln Investments

ZHUKOVSKY, Moscow Region -- VSMPO-Avisma plans to invest $800 million to $1 billion to increase output of titanium products and may list shares abroad in 2010, the company's general director said Tuesday.

Vladislav Tetyukhin told reporters that VSMPO-Avisma, the world's largest producer of titanium, would increase output by nearly 60 percent by 2010 to meet booming demand from the world's aircraft manufacturers, including Boeing and Airbus.

VSMPO-Avisma has long proposed an initial public offering of shares abroad, although plans were put aside as Russian state arms exporter Rosoboronexport negotiated the purchase of a 66 percent stake in the company last year.

"I think in 2010 we could do the IPO. We will do an IPO in the United States and Europe and in Russian markets," said Tetyukhin, one of the two former co-owners of VSMPO-Avisma who sold their stakes to Rosoboronexport.

He declined to say what size stake the company would sell, but said Rosoboronexport would remain the majority owner.

"It is clear the stake size will be such that it will be no concern to Rosoboronexport about its influence over the company."

Demand for titanium products worldwide is increasing as aircraft makers demand the highly resistant metal for use in new state-of-the-art airplanes.

Tetyukhin said the company would be able to fund its expansion through a mixture of its own resources and loans.

"I think we will able to finance it through our own funds and through normal credit," he said.