Translated by

VSMPO-AVISMA Titanium-magnesium works

Company

width=200px

Owners:
Prominvest - 66%

Revenue and profit of the company

RevenueProfit
200926 013 300---
201024 748 200---
20000 employees in 2015
300px

Assets

Assets

+ VSMPO-AVISMA (Titanium-magnesium works)

The VSMPO-AVISMA corporation is the Russian metallurgical company producing titanium and products from it, is a part of Rostec state corporation. Is the only titanic company in the world performing a full stroke of production — from processing of raw materials before release of end products.

The VSMPO-AVISMA corporation is deeply integrated into the world aerospace industry and is for many companies a strategic product provider from titanium. In addition to titanium the corporation makes the pressed large-size products from aluminum alloys, semi-finished products from alloy steels and hot strength alloys on a nickel basis.

Assets

The main production of the company is in Sverdlovsk region (city of Verkhnyaya Salda).

Also the structure includes the Berezniki Titanium-magnesium works "AVISMA", the world's largest producer of a titanic sponge — initial raw materials for production of titanium.

AVISMA VSMPO-AVISMA Corporation branch of JSC is the chemical and metallurgical enterprise occupied with production of spongy titanium and titanic powders, metal magnesium and alloys on its basis, products from the magnesium alloys made by a casting method under pressure and also chemical products — titanium tetrachloride, vanadium pentoxide, vanadium oxychloride, the mednokhloridny modifier, gumboil baric.

In world production of a titanic sponge AVISMA occupies the largest sector — about 30%. The spongy titanium produced at the enterprise is used as a semi-finished product for production of titanic products of deeper processing — sheets, profiles, forgings, stampings.

AVISMA — the producer of metal magnesium, largest in Russia, and alloys on its basis. Magnesium and its alloys are delivered to the companies on production of automobile and aerospace parts, sea vessels and oil and gas pipelines. Before liquidation of section of casting under pressure (the main production site No. 6 of workshop No. 31) in 2011, AVISMA was the only thing in the Russian Federation the enterprise which released products from the magnesium and aluminum alloys made on technology of casting under pressure with the subsequent machining. The average number of employees of AVISMA branch as of July 1, 2011 — 5559 people.

The VSMPO-AVISMA corporation has more than 300 international certificates on a quality management system, production methods and control, separate types of products from titanium and other materials

Performance Indicators

Partners of VSMPO-AVISMA corporation — the leading world aircraft-building companies: Boeing, Airbus, SNECMA, Rolls-Royce, Pratt&Whitney and others (all — more than 300 firms in 48 countries of the world).

For 2007 the company is the leading supplier of aviation titanium for Airbus and the second — for Boeing company.

70% of products are exported. The corporation provides up to 40% of needs of Boeing for titanium, 60% of requirements of EADS, 100% — Embraer.

In addition, VSMPO-AVISMA delivers titanium and aluminum (and products from them) for other industries and also produces consumer goods, including shod rims. The VSMPO company is one of three Russian companies having the international accreditation of Nadcap for producers in aerospace and war industry.

The company in 2006 produced 23,900 t of titanic products (in 2005 — 21,000 t)

History

2004: Creation of VSMPO-AVISMA corporation

On September 21, 2004 at extraordinary general shareholder meeting in the city of Verkhnyaya Salda the decision is made and the Agreement "about reorganization in the form of accession of JSC AVISMA (JSC AVISMA titano-magniyevy kombinat) to JSC VSMPO (JSC Verkhnaya Salda Metallurgical Production Association)" with transition of all rights and obligations of JSC AVISMA to JSC VSMPO is approved. On December 28, 2004 by the solution of joint general shareholder meeting in the city of Verkhnyaya Salda — Society is renamed into VSMPO-AVISMA Corporation Open joint stock company.

At the beginning of 2008 it was announced signing of the long-term contract with the French company Safran SA which was brought by VSMPO-AVISMA to positions of the prime vendor of titanium for group of the international producers. Contract amount is over $300 million.

The 1990th: Crisis and privatization

In the early nineties of the XX century, the collapse of the USSR led to almost complete cessation of orders from the state for the aircraft and defense equipment. It led to sharp decrease in demand from internal consumers for products AVISMA and VSMPO, to declining production, delivered the enterprises on a bankruptcy edge. In 1992 production of a titanic sponge on AVISMA decreased by 14%, and in 9 months 1993 dropped by 30%. One of exits in the circumstances privatization of both enterprises seemed. On February 18, 1993 VSMPO was transformed to joint-stock company.

On July 17, 1992 the working commission on privatization of the Berezniki Titanium-magnesium Works (BTMW) under the chairmanship of the CEO E.D. Samusik is created. On October 1, 1992 the commission prepared and submitted the plan of privatization of plant, the appraisal report of property and charter of joint-stock company to a regional property management committee. On November 10, 1992 state registration of joint-stock company AVISMA (JSC AVISMA) took place. In 1993 control over the enterprise received Menatep bank. In November, 1993 the first JSC AVISMA shareholder meeting at which the first chairman of the board of directors of JSC AVISMA — one of founders and owners of Menatep Bank Mikhail Khodorkovsky was elected took place. In 1994 at investment tender, the Mayak company controlled by Menatep Bank purchased at the state a 10% share block of JSC AVISMA under guarantees of investments into plant in the amount of $36 million, but did not fulfill the obligations. In 1999 the Russian federal fund of property accused buyers of failure to follow the investment program and began lawsuits for return of 10% of stocks of plant to state property. Judicial authorities decided to return actions to the state, however, it was not succeeded to make it, at that time time Mayak was liquidated. In 1997 ROSPROM Ltd is the company managing share blocks of the enterprises belonging to Menatep bank sold a 70% share block of JSC AVISMA through the Russian representative office (closed joint stock company IR Creditanshtalt-Grant) of the Austrian investment bank "Creditanshtalt Investment Bank" ("Kreditanstalt") to the American billionaire Kenneth Darth. In 1998 Kenneth Darth and his partners exchanged at owners of JSC VSMPO, 70% of stocks of JSC AVISMA for 28% of stocks of JSC VSMPO. Soon owners of JSC VSMPO Vyacheslav Bresht and Vladislav Tetyukhin redeemed this share block.

In 1994 JSC AVISMA became the member of the International Magnesian Association. Till January 24, 2005 the company carried the name "Open joint stock company "Verkhnaya Salda Metallurgical Production Association'".

The 1950th: Development

In the 1950th years of the 20th century in the USSR rapid development aviation and rocketry, creation of the domestic underwater fleet and the nuclear industry began. All this required use of the new materials conforming to strict requirements of utilization properties, titanium became one of such materials. The solution of Council of Ministers of the USSR of June 21, 1956 for the plant in Verkhnyaya Salda set the task: begin large-lot production of ingots and semi-finished products from titanium alloys. Based on the Berezniki Magnesian Plant (BMP) it was supposed to construct new Titanium-magnesium works with production of 8 thousand tons of titanium in ingots in a year.

In 1956 at Plant No. 95 mastering of the production technology of stampings and forgings from titanium alloys, pressings of titanic profiles began. On February 17, 1957 the first titanic ingot of VT alloy 1-1 with a weight of 4 kg and with a diameter of 100 mm is melted. On February 25, 1957 Plant No. 95 integrated with the Plant of rolling and drawn products from heavy non-ferrous metals and alloys (Plant No. 519) with assignment to the joint plant of number — No. 95, Gabriel Dmitrievich Agarkov heading Plant No. 95 since 1952 is appointed the director of the consolidated enterprise. Since 1958 at the enterprise full-scale production of primary titanium, since 1959 — stamped and molded articles from titanium alloys began, and in 1960 the production technology high-percentage (70%) ferrotitanium is developed and implemented. On June 29, 1961 Plant No. 95 is renamed into the Verkhnyaya Salda metalworking plant (VSMOZ).

On February 8, 1960 on the Berezniki Titanium-magnesium Works (BTMW) the first block of spongy titanium is received.

From 1957 to 1990 VSMPO was the only supplier of titanium for the Soviet aerospace and war industry. In 1989 the enterprise melted more than 100 thousand tons of titanic ingots that is 30% more, than at other producers of titanium in the world. In 1991 at the amount of the titanic ingots melted on VSMPO for 50% exceeded the total production of titanic ingots in the USA, Europe and Japan combined, at the same time up to 55% of the produced titanium there were on needs of aircraft of the Soviet Union, 15% — on space developments and rocketry, up to 25% — on the fleet, the rest — on key branches of economy.

1941: Creation of the backup plant in the Urals

After the first bombings of Plant No. 95 in July, 1941, the decision on creation of the backup plant in the Urals in the city of Verkhnyaya Salda, to the plant assigned number — No. 491 is made. October 8, 1941 begins complete of evacuation of Plant No. 95 of the Moscow region to the city of Verkhnyaya Salda of Sverdlovsk region. On November 19, 1941 backup Plant No. 491 integrated with the evacuated Moscow region plant, to the new enterprise assigned number — No. 95. From 1941 to 1944 Plant No. 95 is the only supplier of semi-finished products from aluminum and magnesium alloys for needs of aircraft and fleet of the USSR.

From the beginning of the Great Patriotic War significant changes which concerned the technology scheme (failure from chlorine transfer), the production capacity and the master plan of the plant were made to the original project of construction of BMZ. On January 16, 1942 the simplified project of construction of BMZ developed by general designer BMZ — the Leningrad institute "Giproalyuminy" was approved. On June 5, 1942 the State Committee of Defense (SCD) makes the decision on construction of the first stage of BMZ expected production capacity — 3.3 thousand tons of magnesium a year. On June 22, 1943 at the Berezniki Magnesian Plant (BMP) the first ingot (Chushka Spit) of magnesium which was cast by vanshchik of electrolysis workshop Porfiry Barmak and Vasily Dzyuba is received. This day is considered a birthday of the Berezniki branch of Corporation — "AVISMA".

For dedicated work in days of the Great Patriotic War, on September 16, 1945 Plant No. 95 in Verkhnyaya Salda is awarded with the Highest State award of the USSR — the Order of Lenin, and on April 16, 1946 the Red Banner of the State Committee of Defense (SCD) is transferred to the museum of the enterprise to eternal storage.

1929: Beginning of construction of the plant

In February, 1929 at the Xietun Moskovskoy station of the region construction of the plant on production of semi-finished products from aluminum and magnesium alloys began. On July 1, 1933 start-up of the enterprise in operation took place. It was the first in the Soviet Union specialized plant on production of semi-finished products from aluminum and magnesium alloys for airplanes and aviation motors. In January, 1934 the plant from Glavtsvetmetobrabotki's maintaining is transferred to the jurisdiction of Glavaviaprom. Number — No. 95 is assigned to the plant.

In the late thirties of the XX century, when war with Nazi Germany already covered half of Europe, the Soviet Union hurried to strengthen the defense capability. There were obviously not enough capacities of traditional producers of magnesium — the Dnipropetrovsk and Solikamsk plants —. In 1939 Ekonomsovet the USSR makes the decision on creation of one more magnesian plant in the city of Berezniki of the Perm region (from March 8, 1940 to October 2, 1957 — the Molotovsky region.). On October 11, 1940 the decision of the Central Committee of the All-Union Communist Party (bolsheviks) and government of the Soviet Union "About construction of the magnesian plant in the city of Berezniki of the Molotovsky region" was published. In April, 1941 the engineering design and the general estimate of construction of the Berezniki Magnesian Plant (BMP) which became the ancestor AVISMA is approved. Performance enormous for those times — 11 thousand tons per year of finished magnesian goods and the technology scheme providing transfer to third-party consumers of 50% of the produced chlorine was provided in the project. Besides, the feed circuit of BMZ from own combined heat and power plant was considered by the electric power.