Ukraine can become the titanium hub of Europe, but hundreds of millions of dollars are needed.

To replace Russia in the global supply of titanium, Ukraine will require years of construction and hundreds of millions of dollars of investment, said the chairman of the board of the United Mining and Chemical Company, (UMCC) Yehor Perelyhin. According to him, Ukraine and Russia currently play in fundamentally different market segments. Ukraine specializes in mining, and Russia in deep processing.

“Creating our own value chain will take 7-10 years and cost more than one billion dollars. For this, we need to create a healthy environment for foreign investment and new processing technologies,” said Perelyhin.

The UMCC head emphasized that in order to replace Russia as a leading titanium producer, Ukraine must create new production infrastructure for titanium sponge and titanium slabs. At the same time, developing an integrated complex for titanium sponge production requires a $420-500M capital investment. Only strategic investors can provide financial resources of this sort.

Perelyhin added that Ukraine has great potential, with its natural resources and geographical position, to become a major supplier of titanium to Europe.