The budget-sustained Zaporizhia-based titanium and magnesium mill has been reorganized into a state-run enterprise.

The reorganization is stipulated in order No. 200 dated March 17 by the Industry Ministry, reads a report in the government's Uriadovy Kurier newspaper, which was published on Thursday.

Creditors' claims are to be accepted within two months of the date of publication, reads the newspaper.

As reported, the government in February decided to set up a state holding company Titan Ukrainy, which will comprise 100% of stocks in OJSC Sumykhimprom, state joint-stock company Titan, and Zaporizhia state titanium and magnesium mill after it is reorganized into an open-end joint-stock company.

The Industry Ministry was determined to be the founder of Titan Ukrainy.

Zaporizhia titanium and magnesium mill is a state-owned enterprise that is Ukraine's only producer of titanium sponge. Its designed capacity is 20,000 tonnes per year. About 90% of the company's output, which is used mainly in the space industry, is sold on foreign markets.

In addition to titanium sponge, the mill produces germanium – single and poly crystals, and germanium oxide, as well as titanium alloys, titanium slug, and articles made of silicon.

In 2008, the mill boosted output of sponge-type titanium by 1.9%, to 9,930 tonnes. Its sales were estimated at UAH 510.37 million, including UAH 422.11 million worth of exports. The profitability of the marketable commodities was 16.5%.