Holding company Velta Group Global to build plant in IsraelMar 2, 2018
The Ministry of Economy and Industry of Israel reported on the allocation of land to Velta Titanium, a company in Velta Group Global holding, for construction of pigmentary titanium dioxide production plant.
The annual capacity of the plant will amount to 40 000 tons of titanium pigment, with a further increase to 70 000 tons. VGG plans to process its own titanium raw material (ilmenite), which is extracted by its Ukrainian-based subsidiary, Velta LLC from Birzulivske deposit in Kirovohrad region. The invested amount is estimated at $150-200 million. 450 jobs will be created on the first stage of the project, and 600 in total after completion of the second stage.
We remind that at the end of 2017 Velta Group Global announced its intention to launch R&D center in Ukraine. The plant in Israel will become one of platforms for testing developments of this Research and Development center.
The site for pigmentary titanium dioxide production plant is located in Mishor Rotem technopark. According to Israeli legislation, Velta Titanium can expect 30% state subsidies of the invested amount under the Investment Support Act, with additional 10 to 20% for plant location in periphery. Another advantage of construction in Mishor Rotem is the proximity to the future ammonia production plant that will be used in production chain of the pigment plant.
The start of the plant construction is scheduled for the second quarter of 2019. The launch shall take place in the first half of 2021.
The holding company Velta Group Global belongs to Ukrainian owners and includes Ukrainian subsidiary Velta LLC with its raw materials asset, Israeli subsidiary Velta Titanium, created for the purposes of vertical integration, and a research division Velta RD Titan.
“The asset in Israel marks the beginning of VGG strategy implementation to build a vertically integrated international group. We strive to diversify our activities by types and different regions of the world. VGG not only increases its raw material assets, but also goes towards processing titanium raw materials in parallel,” – stated Andriy Brodskyy, Director of Velta Group Global