
VSMPO-Avisma, titanium producer, expects 2025 production to be “the 2021 level,” CEO Dmitry Trifonov told reporters, while majority owner Mikhail Shelkov described current volumes as a “low plateau.” The company did not disclose the 2021 figure. Separately, VSMPO marked the smelting of its millionth titanium ingot at its Sverdlovsk Region complex—a 5,200-kg, 870-mm-diameter piece produced at above 3,000°C—at a ceremony attended by regional officials.
Production outlook and investment plans
Trifonov said volumes fell after the start of Russia’s invasion of Ukraine and “will probably level off this year and next.” Shelkov added that, if conditions allow, VSMPO aims to lift smelting and expand “complex technical products” for additional markets, with 2025 capex largely focused on repairs and modernization, similar to prior years though without disclosing amounts. Russia’s titanium industry has nameplate capacities of roughly 46,500 t/yr of sponge and 81,000 t/yr of ingot, with VSMPO the leading producer, according to USGS data.
Customers, trade flows and the post-2022 reset
VSMPO’s aerospace book changed markedly after 2022. Boeing announced in March 2022 it would stop buying Russian titanium, ending a decades-long supply relationship and a planned expansion of their Ural Boeing Manufacturing venture. Airbus, by contrast, obtained Canadian sanctions waivers in 2024 to keep titanium flowing while it worked to reduce dependency, underscoring Europe’s tight supply options for aerospace-grade metal. Western purchases persisted into 2023 despite wider sanctions on Russia, highlighting carve-outs and exemptions in titanium trade.
Industry context and applications
Titanium’s high strength-to-weight ratio and corrosion resistance keep it central to commercial jets, engines, defense platforms and industrial equipment. Europe remains exposed to Russian supply given the limited number of qualified aerospace-grade sources, with Japanese and Kazakh producers among the few alternatives. The EU’s Critical Raw Materials push and recycling initiatives aim to ease concentration risk, but near-term substitution is constrained by certification timelines.
Company Background and Market Context
VSMPO-Avisma, based in Verkhnyaya Salda, is often described as the world’s largest integrated titanium producer, supplying mill products and ingots to aerospace and industrial customers worldwide. Industrial Investments, controlled by Mikhail Shelkov, holds about 65% of the company; Rostec owns a minority stake. In 2022–23, trade data still showed substantial exports of Russian titanium metal to Western destinations, even as export controls tightened on some transactions.
Titanium remains a critical input for aerospace and defense, with demand tied to aircraft build rates and engine aftermarket activity. While titanium does not trade on major exchanges, market tightness since 2022 has reflected long certification cycles and limited sponge capacity outside a handful of producers; prices for aerospace-grade products have tracked recovering jet output and constrained supply.