Dong-A Special Metals Signs Long-Term Contract for Domestic Ferrotitanium with German Company

Dong-A Special Metals recently signed a long-term supply contract for ferrotitanium worth 3 billion won annually with a German steelmaker. While expansion has been difficult domestically due to the perception of the product as high-priced, the company is now in the final stages of signing a supply contract with a Japanese firm, which is seen as a recognition of its quality.

The company announced on the 26th that it had signed a long-term supply contract for ferrotitanium with a global firm that supplies specialty steel to various key industries in Germany, including automotive, aerospace, and energy.

Analysis suggests that a quality-focused production strategy was the key factor in securing this order. It is noteworthy that this result was achieved amidst a gap in the existing global supply chain.

According to industry sources, supply plummeted in the UK, a major ferrotitanium producing country, after two major companies went bankrupt unable to cope with rising electricity costs. As this supply gap emerged, orders from steel companies have been flocking to Dong-A Special Metals. Its proven quality has become a key factor in this opportunity.

◇ Securing proprietary technology… Establishment of a ‘Continuous Production System’

Dong-A Special Metals is processing titanium scrap into ferro-titanium, a national strategic asset, through its independently developed recycling technology.

Jang Jae-yi, Vice President of Dong-A Special Metals, explained, “We have long strived to localize the production of ferro-titanium, one of the nation’s strategic assets, and now, having clearly established manufacturing technology, we have built a system capable of continuous production.”

He added, “In addition to ferro-titanium, we are on the verge of signing supply contracts with aerospace companies for titanium ingots and new rare metal alloys,” emphasizing, “We will further strengthen our competitiveness in the global market through a diverse product lineup based on titanium recycling technology.”

Source: FerroTimes (http://www.ferrotimes.com)