The Titanium Backbone of the Aerospace Industry: Sumitomo Corporation and OSAKA Titanium technologies Share the Untold Story of 70 Years of Growth

To begin, could you tell us what kind of company OSAKA Titanium technologies is?

Kato (OTC) Titanium is used everywhere, from daily necessities to aircraft. OTC is a manufacturer that produces titanium at source: we extract titanium from ore through smelting. In 1952, we became the first company in Japan to successfully produce titanium sponge. With capital participation from Sumitomo Metal Industries, we later changed our name to Osaka Titanium Co., Ltd. and began exporting to the U.S. in 1953. Because titanium after smelting is porous, the product is called titanium sponge.

Titanium sponge for aerospace needs to be of the highest grade, and for engine applications, only four manufacturers worldwide (two in Japan, one in Russia, one in Kazakhstan) are certified to supply it. OTC is one of those four, and we hold a top-tier global share.

How did the relationship between OTC and Sumitomo Corporation/Sumisho Metalex begin?

Kato (OTC) We don't have any overseas bases, so for decades we've relied entirely on Sumitomo Corporation for our international sales. In the past, many U.S. titanium manufacturers (manufacturers that melt titanium sponge and process it into titanium mill products) produced their own titanium sponge in-house. However, around 1993, a shift began toward sourcing titanium sponge externally, which greatly expanded our export volume. We were able to respond to that shift because of the strengths we built together with Sumitomo Corporation: quality competitiveness, ability to maintain stable supply, cost competitiveness and strong relationships of trust with customers. Thanks to this partnership, our annual production capacity has grown from about 300 tons at founding to 40,000 tons today. OTC's export business would never have grown this far without Sumitomo Corporation's support.

Kudo (Sumitomo Corporation) While OTC has focused on stable, high-quality production, the Sumitomo Corporation Group has consistently handled OTC's exports, mainly to North America. Our overseas offices are our points of contact with customers, negotiating deals and managing everything from export logistics to on-site sales. Since 2018, trading operations have been transferred to Sumisho Metalex, our group company specialized in trading. Meanwhile, Sumitomo Corporation's overseas offices still serve as local contact points, communicating with customers and partners across Europe, the U.S., East Asia and ASEAN. Sumitomo Corporation itself participates in strategy discussions and provides higher-level support as the supervision organization.

What does Sumisho Metalex handle on a daily basis?

Over such a long history, there must have been major challenges.

Kato (OTC) Certainly. The U.S., where titanium demand is highest, is a market full of risks. After 9/11, during the Lehman shock and most recently during COVID-19, aircraft production fell sharply and titanium demand plummeted. Each time, we worked with Sumitomo Corporation to overcome the crisis.

One symbolic challenge was a trade issue in the 2010s, when a U.S. titanium manufacturer (still producing titanium sponge in-house at the time) filed an anti-dumping petition claiming our prices were unfairly low, trying to impose heavy tariffs.

Kudo (Sumitomo Corporation) If the petition had been approved, tariffs on OTC's titanium sponge would have been passed on to our U.S. customers, hurting everyone. So, we mobilized major customers, gathered customs and legal data with help from Sumitomo Corporation of Americas, consulted our Washington office for government insight and used every part of Sumitomo Corporation's global network. With key customers standing beside us, we negotiated persistently with the U.S. Department of Commerce. My prior experience with anti-dumping cases during my time in Europe also helped.

After so many years together, what shared culture or values have developed between OTC and the Sumitomo Corporation Group?

Sema (Sumisho Metalex) I would say a deep respect for customers. We prioritize long-term partnership over short-term wins. By delivering OTC's top-quality products consistently and on time, we build true win-win relationships. This approach has remained constant across generations of staff at all three companies.

Kato (OTC) Because we don’t have our own overseas logistics division, Sumitomo Corporation's support is essential in maintaining on-time delivery and stable supply, factors critical to earning customer trust. Sumisho Global Logistics has also been a huge help. Even when unexpected problems arise, we feel confident because "Sumitomo Corporation will find a way." After COVID, aircraft demand surged and U.S. customers suddenly faced shortages of titanium sponge. That, too, was resolved thanks to Sumitomo Corporation.

How did you resolve the shortage?

Kudo (Sumitomo Corporation) We approached customers who had excess inventory and asked whether they would sell to those facing shortages. It sounds simple, but confirming whether each lot met technical requirements and specifications was a major effort.

Kato (OTC) Aerospace-grade titanium sponge must meet strict specifications, manufacturing conditions and inspection standards. If the wrong material were delivered, it could lead to a serious incident. Sorting through piles of inventory across multiple warehouses and confirming compatibility was extremely demanding, especially because the product also had to be shipped to other locations. Although OTC proposed the idea, Sumitomo Corporation did most of the actual coordination. I knew that they would be capable, and they exceeded my expectations.

What is your outlook for the titanium business going forward?

Kato (OTC) Demand for aircraft-grade titanium is growing 5–10% annually. Over the medium to long term, as travel demand continues to increase, aircraft demand will rise. New models are being introduced to improve fuel efficiency and reduce weight. As a result, demand for titanium sponge will continue to expand. Last year, OTC decided to increase its annual production capacity by 10,000 tons on top of our existing 40,000, but even that may not be enough in the long term. As production capacity grows, we want to strengthen our partnership with Sumitomo Corporation and expand business together.

Sema (Sumisho Metalex) In June 2025, OTC and Sumitomo Corporation also signed a comprehensive agreement promoting GX (Green Transformation). We aim to support OTC using Sumitomo Corporation's GX expertise, such as introducing green power through solar generation with battery storage, with the goal of achieving carbon neutrality by 2050. Building on 70 years of partnership, we want to deepen this relationship and evolve together toward a more sustainable business.

Kudo (Sumitomo Corporation) Titanium sponge may be an upstream material that people seldom see, but without it, aircraft cannot fly. New aircraft are becoming lighter to improve environmental performance, using more carbon-fiber reinforced plastic (CFRP). Titanium, with its similar thermal expansion characteristics, is increasingly being used alongside CFRP. Supporting such a socially essential industry gives us great pride. Moving forward, we intend to continue supporting the aerospace industry that enriches so many people's lives.