OAO VSMPO-Avisma (VSMO), the world's biggest titanium maker, plans to delay the completion of a $1 billion investment program by three years to 2015 because of weaker demand and expanding stockpiles, Chief Executive Officer Yevgeny Romanov said.
The company expects the credit crunch to mean fewer orders from airplane makers, Romanov told reporters, in remarks later distributed by VSMPO in an e-mail today. The producer doesn't plan to cut jobs, he said.
VSMPO expects Vnesheconombank, a state bank, to lend the company $400 million over five years to help finance the investment program, Romanov said.
VSMPO is controlled by Russian Technologies Corp., a state holding company focused on machine building.
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