Titanium Valley brings Russian titanium into the spotlight

In an effort to promote modernization and drive economic development throughout Russia, Prime Minister Putin recently announced the establishment of a Russian “Titanium Valley” Special Economic Zone in the Urals Federal District. Mirroring Russia’s high-tech Skolkovo project, the $1.3 billion economic zone will grant customs and economic benefits to producers of titanium-based products in the aircraft, automotive, shipbuilding and medical industries.  

The announcement came after the prime minister visited the facilities of key companies in the region including titanium manufacturer VSMPO-Avisma. The project, he announced, would create “a new technological base” for the titanium producer, allow the company to attract new partners and increase its visibility abroad.  By boosting economic activity, the project would also have social benefits, with analysts estimating it could create up to 20,000 new jobs. 

With infrastructure construction set to begin next year, 20 companies including key industry players such as Nokia, the Rolls-Royce Group and Goodrich have expressed interest in setting up shop in Titanium Valley, with executives expressing bullish outlooks on the project and their companies’ participation in it. 

According to Prime Minister Putin, these companies will have a reliable partner in VSMPO-Avisma, which has invested a total of $700 million in modernization over the past several years and plans to invest $500 million more by 2015. Putin emphasized the company’s stability, pointing to its existing relationships and JVs with industry leaders such as Boeing and EADS.  The government’s dedication to building Titanium Valley is certain to draw more interest to the company, bringing the world’s largest titanium producer into the spotlight by highlighting Russia’s titanium industry as a whole. 

Questions: What is your outlook on the development of Titanium Valley? How will the development of Skolkovo impact the project?