To be the most competent supplier of titanium mill products

Asian Metal: Thank you for taking our interview. Could you please give us an introduction of your company?

Mr. Ma: Tiancheng Aviation materials is the world's leading titanium alloy manufacturer, providing customers with competitive, safe and reliable bar and wire products and services in the aviation field. Founded in 2007, the company is a talent-based, technology-centered private enterprise, with business in more than 40 countries and regions. With sales and technology centers in the United States and Germany, the company is committed to promoting the development of aerospace industry through the development and application of advanced materials.

Asian Metal: Could you please introduce your main business and operating performance briefly?

Mr. Ma: Our company runs stably. We mainly provide customers with titanium alloy bars, wires (single weight of 200kg) and forging products used in the aviation and spaceflight industries. In 2018, our company posted revenue of RMB230 million (USD33 million), an increase of 30% YOY. Domestic and overseas businesses account for 48% and 52% respectively of our total business now.

Asian Metal: What's your development goal? Will your company adopt new technologies or launch new projects in 2019? Will there be any changes in the output this year?

Mr. Ma: In 2019, Tiancheng Aviation Materials has carried out a technical renovation and expanded the Aviation Titanium Mill Product Project to lift the production capacity of titanium mill products used in aviation industry to 20,000tpa. After completion, it will fill a number of gaps in domestic market, and mark the completion of three key national projects in the 13th Five-Year-Plan. The company's annual output of titanium mill products will also rise, accounting for 8% of the global total production.

The project can greatly improve the processing efficiency of the titanium industry in China. Our company will become one of the titanium and titanium alloy producers with the highest efficiency, the best quality, the highest yield and the lowest cost in the world after the completion of the project. Our company will become the first one in China that is able to produce high-end Ti-alloy products and able to realize mass production of Ti-alloy profile products used in aviation and marine industries. In addition, our company will be able to solve issues related to reliability and service life of titanium products used in the aero engine, as well as the issue that China has to import a large quantity of titanium products used in the aviation and medicine industries.

Asian Metal: What's your time table about the new technology and new project?

Mr. Ma: By the end of July 2019, the construction of alloy EB furnace will be completed. By the end of November, the construction of KOCKS three-roll continuous rolling mill, 80MN hydraulic press, fully automatic vacuum plasma welding box and 10T VAR double-station vacuum consuming furnace will be completed.

Asian Metal: What are your advantages in titanium mill products used in aerospace field?

Mr. Ma: Firstly, Our company has complete sales channels at home and abroad, and is the only private titanium enterprise in China that has participated in the national aero engine project and passed the acceptance check. We now have 20 clients in military and aviation industries and hundreds of customers in domestic civilian sectors.

Secondly, as one of the first companies in China producing high quality titanium alloy ingot by EB electron beam furnace, the company has changed the existing rod production technique of segmented multi-fire processing to one-fire continuous processing, the segmented sampling inspection to on-line uninterrupted comprehensive inspection, the pure self-forging production of large bar to free forging and rolling process, and the two-way deformation to three-way deformation. The average production cycle is 60 days within the industry, but Tiancheng only needs 15 days. Through the recovery of raw materials, the upgrading of equipment and the optimization of process, Tiancheng's comprehensive cost is more than 20% lower than the average level of the industry.

Asian Metal: Who are your main downstream customers? In view of lingering China-US trade tensions and huge downward pressure, what is your sales strategy this year?

Mr. Ma: Our main downstream customers include domestic customers in aviation, aerospace, navigation, weapons and other military sectors, and international customers in civil aviation sector.

At present, as the escalated trade friction between China and US hits the export market, we cut costs by lean production. Exports to the United States and Russia have been reduced, new markets have been developed, storage centers have been set up in branches, and export credit insurance has been purchased to reduce financial risks.

Asian Metal: What do you think of the price trend of the titanium mill products used in the aviation sector in the third quarter of 2019?

Mr. Ma: As demand from international aviation sector increases and TImet raises product prices, prices for titanium alloy used in international aviation sector are expected to rise 10%-20% in the third quarter; On account of strong demand from domestic military industry and higher prices of titanium sponge, titanium alloy prices are also expected to inch up in China in the third quarter.

Asian Metal:  Thank you again for taking our interview. We wish your company a bright future.

Mr. Ma: Thank you! I would like to thank Asian Metal for its contribution to the development of the titanium industry. Tiancheng Aviation Materials will continue to forge ahead and promote the development of titanium alloy in the aerospace field.