Titanium metals corp. (Timet) has decided against starting construction of a new titanium sponge plant. Based on the company's recently completed sponge production expansion at Henderson, Nev., and a new long-term sponge supply agreement Toho Titanium, "the company has determined that it is not necessary to commence construction of a new sponge facility at this time," Timet says in a statement.

The new long-term supply agreement with Toho of Japan and the Nevada capacity, increases Timet's "total assured available sponge supply" to at least 20,000 metric tons and up to 28,000 metric tons annually through 2024.

The expansion of capacity in the titanium industry often involves significant capital resources and long construction leadtimes, Steven L. Watson, Timet's vice chairman and CEO, says in the statement. "We believe our ability to expand our production capacity through a combination of internal expansion and long-term third-party agreements allow us to grow our business and meet the demands of our customers in a more timely and cost-efficient manner."