BUSINESS MOVING FORWARD - VELTA LLC TO SUPPLY
USD 100M TITANIUM FEEDSTOCK TO NORTH AMERICA UNDER 5 YEAR CONTRACT
U.S.-Ukraine Business Council (USUBC),
Wash, D.C., Wed, April 29, 2020
Velta LLC, Dnipropetrovsk, Ukraine, has agreed to supply USD 100 million of ilmenite, a titanium feedstock, under a 5-year supply contract with the Traxys Group, a global commodity trading group, aimed at meeting the needs of the North American market.
Velta has been working in the US market for seven years. “Given that North America is one of the most stable and fast growing markets, we have decided to enter a longer-term contract, which will ensure additional stability of the company's operations”, said Andriy Brodskyy, CEO of Velta.
Mr. Brodskyy continued, “The main competitive advantage of Velta is that we produce high-quality high-titanium feedstock, which is currently scarce in the world and in great demand in the U.S. market. We also have a good history of business relations.”
Velta LLC,, Dnipropetrovsk, Ukraine, is a member of the U.S.-Ukraine Business Council (USUBC). www.USUBC.org., Washington, D.C.
Traxys head of Industrial Minerals, Eli Skornicki, stated, “Titanium Dioxide pigment is a core business of our group. We are pleased to partner with such a high quality and reliable miner as Velta.”
The ultimate consumer under the contract is Chemours. Chemours is a new kind of chemistry company driven by their purpose to create a more colorful, capable, and cleaner world through the power of chemistry. Chemours is one of the world's largest manufacturers of titanium dioxide (TiO₂).
The company’s Ti-Pure™ brand delivers industry-leading innovation to address the growing worldwide demand for high-quality TiO₂ by developing brighter, more efficient pigments for the coatings, plastics, and laminates markets. Its annual sales exceed $6.5 billion. Chemours employs more than 7,000 people worldwide.
Traxys, headquartered in Luxembourg, is a physical commodity trader and merchant in the metals and natural resources sectors. Its logistics, marketing, distribution, supply chain management and trading activities are conducted by over 400 employees, in over 20 offices worldwide, and its annual turnover is in excess of USD 7 billion. The Group serves a broad base of industrial customers and offers a full range of commercial and financial services.
Velta Holding US has applied to the United States Patent and Trademark Office for patenting a new titanium metal production method. This is the first among numerous Velta RD Titan’s inventions, which are being prepared for review at the patent offices in the U.S. and Ukraine this year.
“When we started the mining business, our goal was to create a vertically integrated high-technology group. Our aim is processing feedstock into the final product, and we have chosen the path of new technologies for this purpose.
"Speaking of vision, VELTA seeks to create the new market for affordable titanium,” commented Andriy Brodskyy, the president of Velta Holding US.
Since 2017, Velta RD Titan has been working on exploring new approaches to the production of titanium materials. In this research, scientists especially focused on titanium metal.The key difference between the method undergoing a patent procedure and the long-existing ones is minimized energy consumption and the number of stages to obtain titanium.
During the creation of the holding structure Velta Holding US Inc. will incorporate Velta LLC, which owns Byrzulivske mining and processing complex with a 9-year production history. Velta occupies 2% of the global titanium feedstock market and plans to expand its assets through the construction of Likarivske complex. The structure will also include Velta RD Titan.