Titanium leap forward may spur new industry

A ground-breaking process for producing titanium alloys _ developed by a Tauranga-based research company _ is likely to spark a new multi-million-dollar manufacturing industry.
Based on initial research from Waikato University, Titanox Development has worked for eight years perfecting a cost-effective process for making near-pure alloy powders from titanium dioxide and raw aluminium.
Titanox chairman Professor Michael Selby today unveiled the company's world-class titanium separation technology at the New Zealand Metals Industry Conference in Hamilton.
Titanox is planning to establish a commercial production plant next year - though a decision has not yet been made on the location.
But Tauranga is being considered since the Titanox managing director Ian Macrae and scientific director Dr Peter Franz, a nuclear physicist, live here.
Titanox, with two of the university researchers on board, has been operating a pilot plant in Penrose, Auckland, for the last two years.
The high quality titanium alloy powder _ lighter and stronger than stainless steel _ can be used for a wide range of specialised products including jet engines, car parts and medical implants like knee and hip joints.
Titanox is working with New Zealand Trade and Enterprise (NZTE) to clearly identify the market opportunities for its special powder which can be applied as a coating or pressed in to shape and heat treated as a solid form.
Warwick Downing, a sector manager in NZTE's Tauranga office, said the Titanox process had the potential to be an exciting development for New Zealand.
``It's our chance to enter the titanium age and build a high value-added industry around it. The powder Titanox can make is near impossible to get and I know of other new businesses in the country waiting to feed off it,'' he said.
``I believe a new manufacturing industry can be developed and reach $1 billion in export earnings within five to seven years. That's the potential and now we have to turn it in to reality _ that's the next goal.''
Existing titanium aluminide alloys are mainly produced in the United States, Europe and China, and ``little old New Zealand is about to leapfrog everyone _ the technology is superior and our companies can have a competitive advantage,'' Mr Downing said.
Titanox developed a mechanical heat treatment system and a separation process to break down the titanium dioxide into very fine particles. The oxygen is then removed from the titanium and the aluminium is added to form the alloy powder.
Mr Macrae said titanium doesn't like giving up oxygen.
``That's one of the secrets in the process. Our alloy powder is highly resistant to corrosion at high temperatures, as well as being half the weight of steel and twice as strong.''
Mr Macrae said the new process was clean and environmentally friendly _ ``there are no little nasties in there at all''.
Titanox, which has already invested close to $8 million, half of that in development grants, would start producing 5-10 tonnes of the alloy powder and employ between 10 and 20 staff.
A kilogram of the powder could sell for between $500-$1500, depending on the quality and specifications, and 10 tonnes would fetch between $5-$15 million.
However, the finished products would be worth 10 times more, resulting in a $100 million business, to begin with.
``If we got to 100 tonne production, that would be a huge industry.
``First we have to prove our credibility _ aircraft companies are not going to buy the powder straight away _ but we are confident we have a product that is competitive,'' said Mr Macrae.
``The powder could be used in turbine blades and the planes would get more compression at higher temperature,'' he said.