PTC Industries acquire Vacuum Arc Remelter to manufacture Titanium ingots; stock dips ~2%

26 Jul 2022 , 11:47 AM

PTC Industries Limited announced the strategic acquisition of Vacuum Arc Remelter (VAR) for the production of Titanium ingots through its wholly owned subsidiary “Aerolloy Technologies Limited (ATL).”

This facility will be built on ATL’s 50-acre plot of land in the Lucknow node of the UP Defence Industrial Corridor.

This acquisition of a Vacuum Arc Remelter is a significant step forward in the company’s efforts to bring best-in-class technologies to India and to establish a fully integrated material manufacturing capability of all exotic materials, including Titanium ingots and recycling facility, Cobalt, and Nickel Superalloys, in three phases at this facility.

The Company has already begun CAPEX in the first phase, which is currently underway, by acquiring and establishing the Vacuum Arc Remelter facility, which is critical for the production of Titanium Ingots from Sponge (ore) with a total capacity of 1,500 tonnes per annum.

In the first phase, PTC will continue to invest in the establishment of more such strategic and critical material facilities, as well as the acquisition of Titanium Melting & Recycling Furnaces & Plants, in the coming months.

The global titanium industry is experiencing supply chain disruptions as a result of macroeconomic events such as the Russia-Ukraine conflict. With changing market dynamics and the impact of recent macroeconomic developments, the global titanium supply chain may undergo a structural shift.

Titanium is a critical component in aerospace and defense manufacturing, so its demand is expected to remain stable.

PTC Industries was trading at Rs1,848 per piece, down by 0.99% against previous close of Rs1,866.55 on BSE. So far, it touched intraday high and low of Rs1,894.95 and Rs1,811.60 respectively.