Mumbai: Russia's VSMPO-AVISMA Corporation, the world's largest producer of titanium, is planning to set up a joint-venture with Kerala Minerals and Mining Limited (KMML), a government-owned company in Kerala, for setting up a joint venture for the processing and smelting of titanium, RBC business daily reported.
The plant, with an annual capacity of 10,000 tonnes of titanium sponge, will supply aviation metal to Hindustan Aeronautics Ltd.
The Russian company, controlled by state-owned arms exporter RosoboronExport (ROE), is in talks with KMML for setting up a joint venture for the processing and smelting of Titanium, RBC business daily reported.
"From the Indian side a protocol of intention has been signed for the construction of a plant for the production of Titanium sponge with an annual capacity of 10 thousand tons," VSMPO-AVISMA General Director Vladislav Tetyukhin said, according to the daily.
"In 2008 we will work out the strategy of the plant and in 2009 it will become operational," he said.
Part of the production of the JV could be imported by Russia and also used in implementation of the joint Indo-Russian Multirole Transport Aircraft (MTA) project.
The Titanium major's JV with KMML is "just the first step," the newspaper quoted a source as saying.
"We have an understanding with the Indian Defence Ministry about setting up a venture for the production of titanium components to meet the requirements of the Hindustan Aeronautics Ltd," a ROE official told the daily.
VSMPO-AVISMA Corporation could pick up central PSU Midhani as its JV partner for the project, source said.
US aviation giant Boeing Corporation, meanwhile, has signed a potential titanium deal with VSMPO-Avisma for a 50/50 Boeing joint venture. That endeavor could produce up to $4 billion in parts orders from Boeing over the next 10 years; plus up to $18 billion in contracts for Russian titanium products, and $5 billion on Russian engineering services, by 2030.