In the framework of the Russo-German business dialogue, JSC TVEL and Hermith sign a huge titanium supply contract
On 17 March 2017, Maxim Oreshkin, Minister for Economic Development in Russia, met with Horst Seehofer, Ministerial President of Germany’s federal state of Bavaria. The meeting took place in the Ministry of Economic Development of the Russian Federation. The parties discussed the current state of, and prospects for, the development of Russian-Bavarian trade and economic relations, as well as the Russian investment climate.
A joint declaration to establish a Russian-Bavarian working group to promote economic cooperation at the level of the Ministry of Economic Development of the Russian Federation and the Bavarian State Ministry for Economic Affairs and Media, Energy and Technology, was signed at the meeting.
In addition, a five-year contract was signed between Chepetsky Mechanical Plant (a company of Rosatom’s TVEL) and Hermith GmbH, a European distributor of titanium products, for a large supply of rolled titanium. The document was signed on the German side by Alexey Rasskazov, the Director General at Hermith, and on the Russian side by Denis Anishchuk, Director General of Chepetsky Mechanical Plant. The contract was validated by Andrey Andrianov, the vice-president for the development of industrial activities at JSC TVEL.
Hermith GmbH, named Bavaria’s best export company in 2015-2016, is banking on the development of new high-tech applications for Titanium. The company is convinced that Russian Titanium alloys will have success on the European market.
Aleksey Rasskazov highlighted Chepetsk mechanical plant’s high-quality labour, good organisation, high discipline and productive culture. “What is equally important for us is the high level of quality-control over production at the plant” he noted. “There are a lot of Titanium producers in Europe, but they can’t achieve what we can achieve together with Chepetsk mechanical plant. I am talking about supplying high-quality products to the leading high-tech industrial companies in Western Europe. That means to automotive companies like Maserati, Mercedes-Benz, BMW, and Ferrari, among others; in energy, that means Siemens; and in aerospace, it’s to the Italian company Leonardo – a company Chepetsk mechanical plant has already begun supplying with Titanium products.”
The contract envisions Chepetsky mechanical plant supplying more than 1000 tonnes of various Titanium products to the European Market, with the supply volume increasing annually, peaking in 2021. The total value of the contract is more than EURO 30 million.
The contract is the result of joint hard work by TVEL JSC and Chepetsk Mechanical Plant (Glazov, Republic of Udmurtia). Over the past five years, colossal organisational, research and development work has been carried out, establishing a regulatory framework and developing the technology needed to allow the plant to obtain its own ingots. The plant has mastered the mass production of a wide range of titanium commodity products: ingots, bars, seamless pipes and welding wire; and it has also launched production of its own unique products: capillary and ‘finned’ titanium pipes.
Today the enterprise produces competitive, high-tech products with high added value. In 2008-2010, the maximum revenue from sales of titanium products did not exceed 40 million rubles. In 2013, revenue was 200 million rubles; in 2016, it was more than 500 million rubles. At present, Chepetsky mechanical plant’s main task is to develop profitable new titanium products to meet market demand.
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TVEL was founded on 12 September 1996 following an Order of the President of the Russian Federation. It is a company of Rosatom State Corporation. TVEL, as a fuel company, includes nuclear fuel manufactures, uranium enrichment and gas centrifuge companies, as well as research and engineering organisations. The company is the only supplier of fuel to Russian NPPs. TVEL provides nuclear fuel for 78 reactors in 15 countries, as well as research reactors in eight countries and to the propulsion reactors in Russia’s nuclear fleet. One in six reactors across the world is operated with fuel manufactured by TVEL