Mahoning Valley experiences highs, lows with RTI’s plans

On Monday, you could almost hear the popping of champagne corks in the Mahoning Valley after Weathersfield Township-based RTI International Metals announced it had secured a $1.1 billion contract to provide titanium products to Airbus, the European aircraft manufacturer.

On Tuesday, however, that elation turned to despair when the company’s vice chairman and chief executive, Dawne Hickton, revealed that top executives will, in all likelihood, move out of the Valley. The reason: They want to be closer to a major airport to facilitate their travel and make it easier for customers to visit them.

The exodus of top executives would mean the relocation of RTI’s headquarters. That’s unfortunate — given the heightened worldwide attention the company will be receiving because of its contract with Airbus.

There’s no blame to be assigned for this decision. It’s the reality of the highly competitive global economy. Although the Youngstown-Warren Regional Airport can accommodate the largest aircraft in the world, it is not served by a major commercial carrier.

Indeed, this lack of regular service was the reason given by Delphi Packard Electric last year for moving its top executives and support staff from its Warren office to Streetsboro.

Airport officials have been working hard to attract just such a carrier and have the full support of Congressman Tim Ryan of Niles, D-17th, and local and state government officeholders. Yes, it is a challenge — but it’s one that must be met. The Valley cannot afford to keep losing highly paid executives through default.

Deep roots

We have no doubt that had travel not been an impediment, RTI International would call this region home for a long time. After all, its roots here run deep.

But Hickton’s revelation Tuesday should not take away from the major news that reached all corners of the globe.

The 11-year relationship between RTI, parent company of RMI Titanium Co, which has a mill in Weathersfield, and Airbus is significant in the business world. RTI will supply at least 45 million pounds of titanium products to the European aircraft manufacturer, which has launched the A380 and A350 XWB programs.

The Airbus contract comes on the heels of other major deals, including one to provide about $2 billion worth of titanium to Lockheed Martin Aeronautics Co. for the military’s F-53 joint strike fighter.

The increased demand for titanium has resulted in RTI’s not only committing more than $100 million to upgrade its existing plants, but in unveiling plans for a new factory in Mississippi to produce titanium sponge. Sponge is used by mills in Weathersfield and Canton to make titanium in slabs and other shapes.

The Weathersfield facility has 400 hourly and salaried employees; the headquarters has a staff of 100.

While Valley leaders say they were not aware of the company’s plans to build a new plant, they should ensure that the Weathersfield facility is among those that will be upgraded.

State’s role

Gov. Ted Strickland the Lt. Gov. Lee Fisher, who also serves as director of the Ohio Department of Development, should reach out to RTI’s chief executive and other top officials to offer the state’s assistance in ensuring that the company’s presence in the Valley is expanded — to soften the blow of the relocation of the top executives.

They should also engage RTI officials in a discussion about the company’s decision to build its $300 million plant in Mississippi.

The $33 million incentive package the state of Mississippi offered RTI certainly doesn’t appear to be excessive, which means there were other factors that influenced the decision. The fact that the new plant will be built next to a Tronox Inc. plant that supplies titanium tetrachloride, used in the production of sponge, does explain a great deal, but state officials need to hear that from the decision-makers.