The new corporation, VSMPO-Avisma, is the result of a merger between the Avisma company and the Verkhnesaldinskoye metallurgical association (VSMPO). It will account for more than 60% of the Russian market.
Avisma and VSMPO have established a coordination council within the corporation.
The Russian Federal Anti-Monopoly Service (FAS) endorsed the deal.
FAS head Igor Artemyev said the deal would contribute to the competitiveness of Russian products on world markets.
VSMPO-Avisma is the world's largest producer of titanium products mainly for the aerospace industry. Avisma accounts for 32% of world titanium sponge production. It has a 6% share on the magnesium market.
The company exports 50-70% of its products. VSMPO-Avisma expects to increase annual sales by 10-12%.
