Titanium development strategy

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Titanium Development Strategy by Wang Xiangdong, Lu Fusheng, Jia Hong, Hao Bin, and Ma Yunfeng 1. Current Situation of the Domestic Industry 1.1 Resources: China’s titanium resources mainly consist of vanadium-titanium magnetite in the Panxi region of Sichuan and Chengde in Hebei, ilmenite sand deposits in Guangdong, Guangxi, Hainan, and Yunnan, as well as rutile rock deposits in provinces such as Henan. At present, the reserves of titanium dioxide within the official statistics in our country amount to over 900 million tons. However, under the current technical and economic conditions, the titanium resources that can be recovered economically are mainly granular ilmenite and rutile, with a total amount of less than 200 million tons. 1. Scale (production capacity and output) and layout 1.2.1 Production capacity and output of sponge titanium As of the end of 2003, China’s annual production capacity for sponge titanium was 4,000 tons, of which 3,000 tons were produced by Zunyi Titanium Plant and 1,000 tons by Fushun Titanium Plant. Due to the strong demand for titanium materials driven by the continuously developing national economy in our country in recent years, both of these factories were able to operate at full capacity, resulting in a total production volume of over 4,000 tons in 2003 as well. 1, 2, 2 Production capacity and output of titanium processed products The production capacity of titanium processed products is primarily determined by the manufacturing capacity of titanium ingots. At the end of 2003, there were approximately 60 vacuum consumable arc furnaces in use in China for the production of titanium ingots. Among them, Baoji Non-ferrous Metals Processing Factory has one 10-ton furnace and one 6-ton furnace, as well as two 3-ton furnaces and two 1-ton furnaces, resulting in an annual production capacity of 6,000 tons of titanium ingots ； Shanghai Wugang Special Metallurgy Company has one 15-ton furnace, one 10-ton furnace, one 5-ton furnace, and two smaller furnaces, which together enable an annual production capacity of 5,000 tons of titanium ingots ； The Shenyang Non-ferrous Metals Processing Plant has 5 vacuum consumable arc furnaces with a capacity of less than 1.5 tons each, and has an annual production capacity of 600 tons of titanium ingots ； Together, these three companies have an annual production capacity of 11,600 tons of titanium ingots. 　　The remaining 44 units are mostly vacuum consumable arc furnaces with a capacity of 500Kg to 1000Kg each; assuming an average production capacity of 200t/a per unit, this results in an overall production capacity of 8800t/a. In this way, our country now basically has a titanium ingot production capacity of 20,000 tons per year. Based on 70% conversion to titanium products, it has a production capacity of approximately 14,000 tons per year. According to preliminary estimates, in 2003 China produced approximately 6,000 tons of titanium products, accounting for about 10% of the world’s total production. 1, 2, 3 Titanium equipment processing 　　Thanks to the sustained rapid growth of China’s national economy, there is a strong demand for titanium equipment in industries such as chemicals, metallurgy, power generation, vacuum salt production, and biopharmaceuticals. In 2002 and 2003, the output value of titanium-based non-standard equipment increased at a rate of over 30%. In 2003, it was estimated that around 20 titanium equipment manufacturing companies had an output value of over 10 million yuan each. Among them, Nanjing Baose Ti Industry Company’s output value from titanium equipment production reached 170 million yuan, an increase of about 40% compared to the previous year; Baoji Non-ferrous Metals Processing Factory also had an output value of nearly 100 million yuan. 1, 2, 4 Industrial Layout 　At present, titanium processing and its manufacturing industry in China are generally concentrated in three main geographical areas. 　　　　The northwest region centered on Baoji. Led by the Baoji Non-ferrous Metals Processing Plant and its subsidiary, Baoji Titanium Industry Co., Ltd., this region has become China’s most specialized base for titanium processing and manufacturing, featuring the most sophisticated processing equipment and the widest range of product specifications. 　　Led by entities such as Shenyang Non-ferrous Metals Processing Plant, Fushun Special Steel Plate Co., Ltd., and Shenyang Dongfang Titanium Industry Co., Ltd., the Northeast Titanium Processing and Equipment Manufacturing Group has been formed; with a large number of small and medium-sized enterprises in this region, titanium equipment manufacturing is quite active there. 　　A titanium processing and equipment manufacturing cluster in the Yangtze River Delta has been formed, with companies such as Shanghai Wugang Co., Ltd. of Baosteel Group, Nanjing Baose Ti Industry Company, and Zhangjiagang Hongda Steel Pipe Factory as its key members. The group’s convenient markets and open mindset are its strengths, giving it great potential for development. 1.3 Operating Conditions 1.3.1 Titanium Sponge In 2002, China imported 2,147 tons of titanium sponge, exported 11 tons, resulting in a net import volume of 2,136 tons ； From January to November 2003, China imported 2,609.9 tons of sponge titanium and exported 72.7 tons, resulting in a net import volume of 2,534.2 tons. 　　In 2002, China produced 3,328 tons of sponge titanium, of which 3,079 tons were actually sold ； In 2003, China produced 4,112 tons of sponge titanium and sold 4,128 tons. 　　The figures above show that in 2003, China’s imports, exports, net imports, production, and sales of sponge titanium all experienced significant growth ； The production and operation of sponge titanium in our country are showing overall improvement, and the sponge titanium industry is in a period of rapid development. 1, 3, 2 Titanium processed products: In 2002, China imported 2,962 tons of titanium products and exported 860 tons, resulting in a net import volume of 2,102 tons ； From January to November 2003, China imported 3,447.9 tons of titanium products and exported 1,006.8 tons, resulting in a net import volume of 2,441.1 tons. In 2002, China produced 4,613 tons of titanium products (excluding those that were re-rolled), while the actual demand was 6,237 tons ； The estimated production volume of titanium in 2003 will be around 6,000 tons, while the actual demand is around 7,000 tons. 　　In 2003, China’s imports, exports, net imports, production, and sales of titanium processed products all increased significantly ； The production and operation of titanium processed products in our country are in good condition, and the titanium processing industry is experiencing rapid development. 1, 3, 3 Titanium Equipment: In 2001, in China, only one titanium equipment manufacturing company had an output value of over 88 million yuan; the rest all had output values below 40 million yuan. In 2002, one of China’s titanium equipment manufacturing companies achieved an output value of over 120 million yuan, while another reached more than 62 million yuan; the rest had output values below 50 million yuan. The total output value increased by 36.8% compared to 2001. In 2003, four companies will have an output value of over 50 million yuan; among them, Nanjing Baose Ti Industry Company will have an output value of more than 170 million yuan, with the total output value increasing by around 30%. China’s titanium equipment manufacturing industry is experiencing rapid development, with most enterprises operating at full capacity and enjoying strong sales and production performance. 1.4 Market Analysis 1.4.1 Macro Analysis Titanium and its alloys have a wide range of applications due to their excellent properties such as corrosion resistance (with a corrosion rate that is nearly zero in seawater), high specific strength, good strength at both high and low temperatures, non-magnetism, good biocompatibility, hydrogen storage capability, shape memory effects, and superconductivity. Generally speaking, the more developed a society is, the greater the amount of titanium used. People usually use the titanium-to-steel ratio to measure this; for example, the titanium-to-steel ratio in the United States and the former Soviet Union is around 2 per ten thousand, while in China it is only about 0.3 per ten thousand. This shows that, with the development of the national economy, there is still a large potential titanium market in our country ； In other words, to meet the rapidly growing needs of construction, titanium industry workers in our country must redouble their efforts. 1. Allocation of demand across different sectors: In 2002, the distribution of titanium products manufactured by China’s 10 major titanium processing companies across various sectors is shown in Table 1. Table 1 shows the percentage of titanium production from these 10 companies that was sold in each sector. Sectors including titanium utilization, chemicals, exports, aerospace, sports and leisure, salt production, metallurgy, power generation, and others are listed, along with their respective allocation percentages: 33%, 23%, 20.7%, 9.2%, 6.9%, 2.6%, 1.2%, and 3.4%. Table 1 does not take into account the actual volume of titanium products produced through contract manufacturing or the 2,962 tons of titanium that were imported. These two categories of titanium materials are likely to be used more in the power and sports-recreation sectors; as a result, after including these two categories, the proportion of titanium used in aerospace and exports will decrease significantly, while the proportion used in power and sports-recreation applications will increase considerably. 1. 4. 3 Outlook for the titanium market In both the United States and Russia, titanium is primarily used in the aircraft manufacturing and shipbuilding industries. In recent years, these two fields in our country have developed rapidly, with new types of aircraft being mass-produced continuously, and there are also many projects under development. It is estimated that the amount of titanium used in these two fields will increase significantly. 　　The chemical industry is a rapidly developing sector in our country, and it is also the largest application area for titanium. Examples of titanium’s use in this field include ion membrane electrolyzers used in the chlor-alkali industry, where titanium is employed as electrodes; titanium-based external coolers and ammonia condensers in the soda ash industry; all-titanium condensers used in the production of purified terephthalic acid (PTA) in the petrochemical industry, as well as reactors and acetic acid recovery towers for the production of pyromellitic anhydride; and decarboxylation towers and plate heat exchangers in the coking industry. With the development of the chemical industry, the demand for titanium will continue to increase. 　　Vacuum salt production is one of the most successful areas for titanium use in China, and new construction and renovation projects will maintain strong demand for titanium. 　　　　Currently, our country is entering a new peak period for power plant construction, and the all-titanium condensing units used in coastal power plants will generate a titanium demand of nearly 1,000 tons per year. 　　　　As people’s living standards improve, products in the sports and leisure industry such as titanium golf clubs, titanium eyeglass frames, titanium watches, and titanium bicycles will continue to exhibit strong demand for titanium. 　　Marked by the **titanium roof of the Grand Theatre, the construction industry began to use titanium. 　　China’s automotive industry will gradually adopt titanium. 　　Among the marine industries that China plans to develop vigorously in the near future, sectors such as offshore oil and gas exploration, marine aquaculture, and seawater desalination will have a significant potential demand for titanium. 　　The demand for titanium in high-tech fields such as biomedical materials, shape memory alloys, and superconductors will also increase. 　　In summary, as long as China’s national economy continues to develop, there will be a real and growing market demand for titanium. Titanium and its alloys are essential key materials in defense, high-tech fields, and many important civilian sectors. 1.5 Development environment and conditions 1.5.1 The rapid and sustained development of China’s national economy continuously drives the demand for titanium materials in various industries, and this is the fundamental factor behind the growth of China’s titanium industry. 1, 5, 2 As reforms progress, along with adjustments and reorganizations of property rights structures, the establishment of shareholding systems, and the implementation of modern enterprise systems, these factors contribute to the development of companies such as China Pangang Titanium Group, Zunyi Titanium Co., Ltd., Baoji Titanium Co., Ltd., as well as the titanium-related enterprises under Shanghai Baosteel Group. They also help to foster the emergence of key enterprises in China’s titanium industry. 1, 5, 3 The policies implemented in China for developing the western regions and revitalizing the old industrial bases in the northeast are conducive to the development and growth of the titanium industry in the Panxi, Zunyi, Baoji, and Shenyang areas. Companies located in these areas, such as Panzhihua Titanium Industry Group, Zunyi Titanium Plant, Baoji Non-ferrous Metals Processing Factory and its Baoji Titanium Industry Co., Ltd., as well as Fushun Titanium Plant, have undertaken **-level projects to conduct research on the comprehensive utilization of titanium resources in the Panxi region, as well as to explore new technologies and equipment for sponge titanium and titanium processed products, and to build new production capacity. 1, 5, 4 The National Titanium Application Promotion Leadership Group, established in 1982, has done a great deal of work in promoting the use of titanium and coordinating the development of China’s titanium industry, playing an important role in advancing this sector in China. The Titanium Branch of the China Non-ferrous Metals Industry Association, established in recent years, has continued these efforts. For example, in 2003 it conducted production statistics, compiled annual reviews on titanium, carried out surveys on the use of titanium, held two seminars on titanium in shipbuilding and automotive industries, and promoted knowledge about titanium as well as information on titanium-related enterprises through its website. These actions represent important factors that contribute to the rapid, healthy, and sustainable development of China’s titanium industry. 1, 5, 5: As people’s awareness of environmental protection increases, and as regulations regarding the treatment of waste become increasingly strict, China’s titanium industry is forced to step up its efforts in dealing with such waste. 1. Development forecasts for 2006 　Against the backdrop of the continuous development of China’s national economy, the goal widely accepted by China’s titanium industry is to reach an economic scale of 5,000 tons per year per factory for both sponge titanium and titanium processed products by around 2005, thus fulfilling the long-cherished wish of several generations of titanium industry workers and reaching a new level of development ； By 2010, it is necessary to raise China’s production of sponge titanium and titanium processed products to 10,000 tons per year, and to have advanced production technologies and equipment, in particular the capability to produce titanium strips, so as to make China a leading power in the global titanium industry. 2. Current Status of the World Titanium Industry 2.1 Sponge Titanium The manufacturers and production capacities of sponge titanium abroad are shown in Table 2. Table 2: Production Capacities of Sponge Titanium Abroad ** Manufacturer Annual Production Capacity (tons) Russia Avisma Titanium and Magnesium Joint Enterprise 30,000 Kazakhstan Ust-Kamenogorsk Titanium and Magnesium Joint Enterprise 45,000 Ukraine Zaporozhzhia Titanium and Magnesium Joint Enterprise 13,000 Japan Sumitomo Corporation’s Niigata Branch 15,000 Toho Titanium Company 12,000 United States Titanium Metals Company 14,000 Oregon Titanium Company 7,600 Total 136,000 Among these 7 manufacturers of sponge titanium, Oregon Titanium Company in the United States ceased its sponge titanium production in recent years; thus, currently only 6 companies abroad produce sponge titanium, all with production capacities of over 10,000 tons each. Countries such as India, Australia, Malaysia, Romania, Iran, and South Africa are also researching the development of titanium sponge production. 　　The actual production volume of sponge titanium was 105,000 tons per year in 1990, the highest figure ever recorded; in recent years, the production volume has been between 60,000 and 80,000 tons per year. 　　In the past, the United States relied too heavily on imported cheap titanium sponge and invested insufficiently in technological upgrades; as a result, some of its production processes remained relatively backward in the early 1990s ； However, after introducing Japanese technology for upgrades between 1992 and 1995, it has reached the world’s advanced level. The production equipment is of high standard; the boiling chlorination technology is at the world’s leading level. The diameter of the chlorination furnace is 3.05 meters, with a daily production capacity of 150 tons ； The capacity of the reduction-vapor combined furnace is 7–10 tons ； The production process is under computer control; the control of each processing step is connected to the computer in the main control room, enabling automatic management of production. 　　The CIS is the world’s largest titanium production and export region, accounting for around 60% of the world’s sponge titanium production capacity. During the Cold War, due to the needs of the arms race and substantial investment in **, the titanium industry experienced rapid development. With the dissolution of the Soviet Union and the end of the Cold War in the early 1990s, demand for titanium in military applications dropped sharply, causing the titanium industry to enter a downturn; production of sponge titanium decreased by 60%. Subsequently, through adjustments, efforts were intensified internally to develop the use of titanium, and its consumption has been rising year by year ； It has strengthened international cooperation, obtained funds from countries such as Belgium and Japan through various means to upgrade its technical equipment, and signed long-term contracts with some Western companies for the supply of sponge titanium; as a result, its current annual production volume has been restored to 30,000–40,000 tons. 　　Japan’s sponge titanium production has also experienced several fluctuations; in 1981 and 1990, the annual production of sponge titanium reached over 20,000 tons. Since the 1990s, the production of sponge titanium has shown a downward trend. Starting in 1996, the production of sponge titanium and titanium products continued to rise, and by 1998 sponge titanium production reached a record high of 24,200 tons per year. Japan has advanced production technology for sponge titanium, with high product quality; reduction distillation is carried out using 8–10 ton inverted U-shaped combined furnaces ； The power consumption has been reduced to below 30,000 Kwh/t (excluding the power consumption in the titanium-enriched material processing step), with a net magnesium consumption of 10 Kg/t, which represents the most advanced standards in the world. Computer control is applied throughout the entire production process; the central computer is connected to the computers in each processing stage, with production management being carried out by the main control computer. 2.2 Titanium processed materials and their applications The global market for titanium processing is dominated by three key players: the United States, Russia, and Japan. The main companies include Russia’s VSMPO, the U.S.-based Timet, RTI, and Allegheny Teledyne, as well as Japan’s Sumitomo, Kobe Steel, and Nippon Steel. Additionally, France, the United Kingdom, Germany, and Italy in Europe also have titanium processing companies. The status of the titanium processing industry in various countries around the world is shown in Table 3. 　　　　　　　　　　Table 3: Key titanium-producing countries in the world in 2002　　　Country Titanium ingot production capacity (t/a) Titanium processed products production in 2002 (t) Percentage share　　　United States 75,800　　　　　16,200　　　　　28.3　　　Japan 23,000 　　　　 14,500　　　　　25.3 CIS 110,000 　　　　　7,000　　　　　29.7　　　Europe 10,500 　　　　　5,000　　　　　 8.7　　　China 10,000 　　　　　4,600　　　　　 8.0　　　Total 229,300 　　　　 57,300　　　　　100 VSMPO in Russia is the world’s largest producer of titanium ingots and processed titanium products; the data on its production and sales of titanium processed products in 1991 and 1997 are shown in Table 4. 　　　　　　Table 4: Titanium Consumption in Russia in 1991 and 1997
Sector | 1991 | 1997 | 1991/1997 Ratio
------------|------------|------------|-----------------
Tonnes | | |
Percentage | | |
Tonnes | | |

Aircraft industry: 36,600 61.5 900 44.0 40
Shipbuilding: 10,900 18.3 145 7.0 75
Metallurgy: 2,700 4.5 330 16.0 8
Chemical industry: 5,100 8.6 225 11.0 23
Electricity sector: 300 0.5 160 8.0 2
Others: 3,900 6.6 290 14.0 13

Total: 59,500 100 2,050 100 30

The data in Table 4 show that due to drastic changes in the economic situation, Russia’s titanium processing industry and its areas of application have also undergone significant changes. In 1991, VSMPO sold 59,500 tons of titanium processed products (which is equivalent to the total amount of titanium used in all other parts of the world) ； In 1992, sales volume was only 2,050 tons, which is one-thirtieth of the figure in 1991. The main areas where Russia uses titanium used to be the aircraft and shipbuilding industries; today it is primarily used in the aircraft, metallurgy, and chemical industries. 　　In recent years, VSMPO has gradually integrated into the global titanium industry, becoming a major supplier to the European Aeronautics Defence and Space Company (EADS). It signed a long-term supply contract with the American company Boeing valid until 2007, and is also working together with the American company Allegheny Teledyne to develop products for the civilian market. In 2002, its production of titanium processed products returned to 16,000 tons, posing a significant threat to the major titanium companies in the United States. 　　The production of titanium processed products by the three U.S. companies Timet, RTI, and Allegheng Teledyne accounts for 90% of the total in the country. Through mergers and acquisitions over the past few years, Timet now controls most of Europe’s titanium processing companies; its operations extend around the world, and it is Boeing’s largest supplier of titanium processed materials. RTI is also a major supplier to Boeing. 　　The three major companies in Japan—Sumitomo, Kobe Steel, and Nippon Steel—each account for almost one-third of Japan’s total production of titanium processed products. Japan’s titanium industry focuses on developing new products for civilian use. Unlike specialized titanium processing plants in the United States and Russia, Japan’s titanium industry operates primarily through a combined steel-titanium production approach, with titanium being manufactured on the same production lines used for stainless steel; this model helps to reduce production costs. 　　In recent years, the world’s annual demand for titanium has been around 60,000 tons, with it being primarily used in the aerospace industry and general industry; these two sectors account for 88% of all titanium consumption. New applications such as sports equipment, bulletproof materials, automobiles, medical devices, computers, construction, and geothermal power generation account for 12% of the total usage. 　　The main obstacle to increasing the use of titanium is its high price. The International Titanium Association predicts that if current prices remain unchanged, global titanium consumption will be 100,000 tons in 2013 ； If costs at all stages of titanium production are reduced by 25%-50%, the amount of titanium used in 2013 will reach 250,000 tons. 3. Trends in technological development Titanium and its alloys possess significant advantages such as high specific strength and corrosion resistance, which has led to them being referred to as “space metals” and “marine metals”. At the same time, they are relatively expensive new metal materials. Therefore, the main trends in the technological development of titanium processing, manufacturing, and application are: reducing costs, developing new alloys, new processing techniques, and new applications. 3. Research on one-step titanium production by electrolysis method: D. Frang, G. Chen, and others from the University of Cambridge in the UK invented a method for producing metallic titanium through electrolytic reduction of solid titanium oxide in a calcium chloride melt pool; this method is also known as the FFC method. This method eliminates the complex and highly polluting processes of titanium chloride and titanium tetrachloride purification as well as magnesium reduction, thereby allowing the cost of sponge titanium to be reduced by one-half to one-third. Currently, this method is undergoing scale-up trials in the United States; if successful, it will represent a revolution in titanium sponge production technology and bring about fundamental changes to the global titanium industry. Countries such as India, Australia, Japan, and Italy have also carried out research in this area. 3.2 The melting technology using cold-bed furnaces is becoming increasingly widespread. The advantage of cold-bed furnaces is that they use electron beams or plasma beams to heat and melt titanium ingots ； A flow section is added to the titanium melt before casting in order to achieve purification ； Circular and rectangular titanium ingots can be easily produced. Therefore, the cold bed furnace melting technology can process large amounts of waste, reduce subsequent processing steps, and thereby lower the cost of titanium ingots. The United States, Japan, and Europe have widely adopted this technology. 3. Replacing seamless rolled tubes with titanium welded tubes: Advances and maturity in titanium strip rolling technology as well as welded tube manufacturing techniques have enabled the use of high-speed, precise titanium strip rolling methods to replace traditional tube rolling processes. This allows for the mass production of titanium welded tubes with high efficiency and precision, within specific ranges of tube length and wall thickness. In Japan, Europe, and the United States, titanium welded tubes are gradually replacing rolled tubes. 3. The advantages of pure titanium strips over pure titanium standard plates are becoming increasingly evident. Thanks to the progress and maturity in the rolling technology for steel strips, especially stainless steel strips, the rolling technology for pure titanium strips has also become more advanced. This enables easy access to titanium sheets with a width of 1.8 meters, facilitating the development of titanium welded pipes. It meets the demand for irregular pure titanium sheets in industries such as chemicals, metallurgy, and construction, and also satisfies the need for ultra-long and ultra-wide titanium sheets in steel/titanium composite materials. For example, Nippon Steel in Japan is a key company in the titanium processing industry, specializing in the production of titanium strips and titanium welded pipes. 3.5 Vigorously develop advanced titanium processing technologies. To meet the demands in high-tech fields for titanium and its alloys, various technologies such as near-net shaping of titanium and ultra-fine grain technologies for titanium alloys have been extensively studied. Russia and the United States also possess the largest processing equipment for manufacturing large titanium alloy components; for example, Russia’s 75,000-ton forging press is capable of producing aircraft forgings weighing 3,210 Kg, which are used in the A380 airliner. 3.6 Great emphasis is placed on new applications of titanium. In recent years, the use of titanium in fields such as construction, offshore engineering, biomedicine, the automotive industry, and sports and leisure has received significant attention; Japan, the United States, and Europe have achieved considerable progress in research and development in these areas. For example, the U.S. company Timet has established specialized automobile factories to develop titanium automotive components, while titanium is already widely used in the construction industry in Japan. 4. The gaps and existing problems in our country 4.1 The production of titanium-rich materials cannot meet the needs of the titanium industry’s development. It is necessary to use titanium-rich materials rather than titanium concentrate as raw material for chlorination. However, the total production volume of titanium-rich materials in our country is low (with an annual capacity of only 80,000 tons); the scale of production is small, with most plants having a capacity of just a few thousand tons. The technology and equipment used are also outdated, and they are far from sufficient to support the expansion of titanium dioxide and sponge titanium production facilities on a larger scale. In particular, there is still no industrial method for producing titanium-enriched materials from China’s main titanium resource—the Panxi ilmenite, which poses risks to the utilization of China’s titanium resources and the development of its titanium industry. 4. Capacity for low-end products is saturated while there is a shortage of high-end products. The most typical example is the production capacity for titanium ingots; in particular, the capacity for small titanium ingots is already saturated or even excessive. Research on cold-bed furnace melting technology is still in its infancy in China, and titanium strips are not yet available as a product in this country. As a result, we are still unable to meet the domestic demand for wide-width titanium sheets and titanium welded tubes, which also explains why China continues to import large quantities of titanium processed products. 4.3 There is a lack of awareness regarding the joint and coordinated development of titanium enterprises in our country. At present, China’s titanium industry is in a period of rapid growth; therefore, it is an ideal time to advocate for reforms, asset restructuring, the establishment of joint-stock companies, and the creation of modern corporate systems – in other words, it is a good opportunity for enterprises to work together and develop in a coordinated manner. However, most titanium enterprises in our country are focused on their own development, with few examples of collaborative and coordinated development. In this way, amid the tide of globalization, there is a lack of the ability to withstand risks. 4. There has not been sufficient attention paid to the importance of advancements in new titanium smelting and processing technologies. A revolution in new titanium smelting methods driven by the FFC process. Several universities and research institutions in our country are also conducting research in this area, but progress is slow due to a lack of funding and little activity. This is due, firstly, to the lack of large titanium industry groups with substantial financial resources in the country, and secondly, to the fact that **relevant departments have not paid enough attention to this issue. This will severely undermine the development potential of our country’s titanium industry. 4, 5 Insufficient macro-level coordination: In recent years, China’s titanium industry has developed rapidly. On the one hand, a large amount of private capital has flowed into this industry, particularly in areas such as titanium ingot production, which requires relatively simple technical skills, and in the processing of ordinary titanium equipment ； On the other hand, there is a lack of standardized industry management and corporate certification; as a result, the market is rather chaotic, with some forms of unfair competition that hinder the healthy development of the titanium industry. 5 Industry Development Strategy 5.1 Resource Development China’s ilmenite resources are primarily concentrated in the Panxi region of Sichuan, where there is also an abundance of hydroelectric resources. Therefore, priority should be given to supporting experiments aimed at using the native ilmenite in this region to produce titanium-rich materials. For instance, on the premise that the research and development plan for producing synthetic rutile through hydrochloric acid leaching has been completed, efforts should be accelerated to build demonstration plants with a production capacity of 10,000 tons, in order to turn the Panxi region into a raw material base for China’s titanium industry. Of course, while establishing a robust domestic production base for titanium-rich materials, it is not advisable to rule out the use of foreign titanium-rich materials to develop China’s own titanium industry, provided that this does bring good social and economic benefits; this also aligns with the laws governing industry development. 5.2 Industrial Structure 5.2.1 Strengthening the development of titanium industry bases 　During the development of China’s titanium industry, production bases for sponge titanium have been established in Zunyi; titanium processing, application, and research centers have emerged in the Baoji and Xi’an areas; groups focused on sponge titanium, titanium processing, application, and research activities have formed in the Liaoshen region; while titanium processing and application groups exist in the Shanghai and Jiangsu/Zhejiang areas. We should make full use of the policies related to the development of the western regions and the revitalization of the old industrial bases in the northeast. With the support of the central government and local authorities, we should gradually transform Zunyi into a production base for sponge titanium on a scale of tens of thousands of tons, turn the Baoji and Xi’an areas into world-class hubs for titanium processing, application, and research that also cover other rare metals, and develop the Liaoshen area into a dynamic, high-tech-driven industrial cluster for sponge titanium, titanium processing, application, and research and development, characterized by social cooperation. At the same time, by taking advantage of the market, financial, and talent strengths in Shanghai and the Jiangsu-Zhejiang regions, and with Shanghai Wugang Group’s Special Metallurgy Company as the core, it will be developed into a high-level titanium processing group equipped with advanced facilities. 　　When building these industrial bases, it is essential to focus on the market and the world, and with an open mindset, develop a titanium industry that is open and integrated into the international titanium market. 5.2.2 Encouraging coordinated development among enterprises Enterprises are encouraged to achieve coordinated development through mergers, shareholdings, and the signing of long-term purchase and sales contracts, and even to form larger titanium enterprise groups, in order to reduce costs, enhance competitiveness, and improve their ability to withstand risks. 5.3 Product Structure Enterprises are strongly encouraged to carry out technological upgrades and develop new products, in order to increase the number of high-tech products and meet the demand for titanium products in various industries. At present, the most urgent task is to encourage enterprises with the necessary capabilities to set up wide-width titanium strip production lines, in order to meet the market’s demand for wide-width titanium plates and titanium welded tubes. 5.4 Market Development 5.4.1 Vigorously promote the use of titanium and explore new areas for its application Vigorous efforts to promote the use of titanium have always been an effective measure to drive the development of China’s titanium industry. We need to spread knowledge about titanium applications to every corner of society through websites, newspapers, magazines, and promotional events. At present, it is important to focus on promoting the use of titanium in new fields such as sports and leisure, construction, ocean development, automotive industry, and bioengineering, in order to increase demand and thus foster the development of the titanium industry. 5.4.2 Conducting qualification reviews to regulate the titanium market Driven by strong demand for titanium, the titanium industry has attracted significant investment, with many new projects and enterprises being established. Fundamentally, this is a good thing, but it also brings about some problems such as saturation or even excess of low-end products, as well as market chaos; therefore, it is necessary to carry out qualification reviews in order to regulate the titanium market. 　　We conduct resource reviews not in order to prevent new entrants or eliminate certain companies, but rather to help enterprises improve their management, technical, and safety standards, thereby standardizing the production and operation practices related to titanium and promoting the healthy development of China’s titanium industry. 5.5 Research on New Technologies and New Alloys Technological progress plays a significant role in driving the development of an industry, and this is especially true for an industry like titanium, which relies on technological advancements as its driving force. Given the inherent characteristics of the titanium industry, research on new technologies and new alloys should focus on reducing costs and developing new applications. The current main directions include: research on new methods for titanium smelting, research on automatic control technologies for titanium smelting and processing, and research on new titanium alloys and additional processing techniques. 6. Prerequisites for implementing development strategies 6.1 It is recommended to **directly support research on new titanium smelting methods, as this research is directly related to the future of China’s titanium industry. 6.2 It is recommended that **when implementing plans for the development of the western regions and the revitalization of the old industrial bases in the northeast, step-by-step support be provided for the construction of the Zunyi sponge titanium base, as well as for the development of titanium processing, application, and research facilities in Baoji and Xi’an, and for the establishment of a titanium industry cluster in the Liaoning-Shenyang region. 6.3 Industry associations have the most comprehensive and systematic understanding of the industry; **they should play a full role in formulating industry development plans, coordinating industry activities, and evaluating projects, rather than simply relying on a few experts to determine the direction for an industry. This post was last edited by hchyanan on 2008-6-19 19:43]