PITTSBURGH (AP) -- RTI International Metals Inc., a maker of titanium products, said Monday it has halted plans to build a factory in Mississippi and instead entered contracts with two Japanese suppliers.
RTI, of Pittsburgh, said its plans to build a $300 million titanium sponge factory in Hamilton, Miss., were on hold indefinitely. Halting the project will lead to writedowns and other charges of about $65 million to $75 million.
The company said it could potentially incur as much as $36 million in additional costs related to a supply agreement for titanium tetracholoride from Tronox LLC. A claim is pending in the U.S. Bankruptcy Court for the Southern District of New York. The supply deal was for the Mississippi factory.
CEO Dawne S. Hickton said the supply contracts, with Toho Titanium Co. and OSAKA Titanium Technologies Co., will give it a reliable source of titanium sponge through 2021.
RTI shares rose 92 cents, or 4.3 percent, to $22.21 on Monday.