RE: ORMET - pretty interesting history
Oregon Metallurgical Company, known as Oremet, is one of only two companies in the United States that produce titanium sponge, the pure form of the rare metal used to produce titanium alloys for use in manufacturing. The company also forges titanium products for aerospace, medical, electronics, and other applications. Although nearly half of the company’s sales in 1996 were for commercial or military aerospace applications, Oremet also was the leading provider of titanium for use in the manufacture of golf clubs, which accounted for 20 percent of sales. The Albany, Oregon-based company operates titanium metals service centers in the United States, United Kingdom, Germany, and Canada through Titanium Industries, Inc., an 80 percent-owned subsidiary. The only other U.S. producer of titanium sponge is Denver-based Titanium Metals Corporation, the industry leader.
------------------------------------------------
You need those assets in the ground plus scale in your operations to be profitable. Also, look for more robots and/or specialized mining equipment in the operation. less labor issues and more efficiency.
A positive is owning U.S. domestic operations as you avoid Political risk but now must deal w/ EPA regulations.
FWIW, my older sister lives in Albany and never heard of this mine/operation. It's a very small town and has been challenged for developing manufacturing and/or new busainesses. Lot of legacy stuff, lumber Mills. Only recently have they seen new business activity in health care and some new tech.
EKS |
