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    Germanium market outlook optimistic with prices edging up
    ----Interview with Dr. Vladimir S.Vitkov, General director (CEO) of Germanium and Applications Ltd. in Russia
    Germanium and Applications Ltd. is one of the major producers and exporters for germanium semi-products in Russia, which mainly focuses on germanium products applied in electronics and lighting, chemical industry, aviation, telecommunication and solar energy.

    Asian Metal: Dr.Vitkov, thank you for accepting our interview invitation. Could you please give us a brief introduction to your company?

    Dr.Vitkov: Our company appeared “from scratch” as a result of successful venture project 11 years ago. When we started we didn’t have any “heritage” of preexisting production facilities. At the starting point we had just two components: money from our investors and ideas.
    Our first steps were related to the design of a small manufacture of germanium optical items. Then we created a small chemical production for recycling waste from germanium cutting and grinding. Afterwards we purchased a site of germanium-containing coal deposit to exploit germanium ore. Once we became owners of production assets, we were just two steps away of becoming a significant in the international scale manufacturer of Germanium: we had to connect the existing assets among themselves and to increase production capacity.
    As for today we’ve overcome both challenges. We extract and process germanium-containing coal in Primorsky Krai, turn it into germanium concentrate, using pyrometallurgical enrichment of the primary material and send this concentrate to our chemical plant in central Russia. There, the germanium concentrate and all the germanium-containing waste are gradually converted into Germanium Tetrachloride, Germanium Dioxide, and Germanium Polycrystalline Zone Refined (GPZ). Each of these products is refined to the market condition, and the GPZ is directed to our production of electro-optical components, where single-crystal germanium is grown from it, from which further on we produce blanks for optical windows and lenses, polished plates and substrates - all kinds of products used in night vision system, electronic and photovoltaic devices.

    Asian Metal: According to your point of view what are the company’s main peculiarities and what is the difference from other germanium producers?

    Dr.Vitkov: Some of our products are unique. We grow single-crystal germanium ingots of superlarge diameters, we perform high-quality double-sided polishing of plates and produce highly granules of extra pure Germanium for optical coatings.
    The fact that we have our own source of raw material is our advantage besides the above-mentioned special products. Only a few companies in the world integrate capacities for Germanium extraction, processing and manufacturing of final products at the same time.
    Our customers include producers for optical fiber, catalyst, microchips, photodetector, night-vision devices, solar batteries and other. It is a very pleasant company of those who implement high-tech projects and constantly inspire us to update our production lines. We are aspiring to keep the same pace with them and it only boosts our activity.

    Asian Metal: How about the current germanium market in Russia? And what do you think about your advantage over others?

    Dr.Vitkov: The Russian germanium market finds support from producers for infrared optical devices. The market experienced a period of stagnation in the 2000s, but has presented upward trend in the recent five years.
    Domestic demand is mostly represented by blanks and finished products from germanium. Demand for standard products such as GPZ and germanium dioxide is significantly lower.
    Besides us, there is one more Russian company which has capacities for Germanium production, and a few others involved in its processing, primarily polishing and application of special coatings.
    We are the only Russian company with its own source of raw materials, which gives us certain advantages. Although we have a certain advantage it’s not a reason to neglect market competition especially when competing with our Chinese who are actively entering Russian market.
    I would say that we are doing our best to feel ourselves comfortable in a competitive environment.

    Asian Metal: What do you think about the current prices for germanium products, about their changes in the nearest and distant future?

    Dr. Vitkov: I think that current prices are inconvenient for producers, and therefore they will grow as grows the consumption of Germanium that unexpectedly burst into the market in large quantities in 2015.
    Since demand trend for Germanium is undefined, it is unlikely that the expected price increase will be significant, it is more likely that it will stabilize at a higher level within 2018. it is difficult to predict the trend later on. I hope that demand for Germanium will increase due to new applications, which are now being formed, but have not yet clearly manifested themselves. This is my vision for 2019.

    Asian Metal: The environmental protection inspections in China have affected China’s production of raw materials. Does Russia have the same problem?

    Dr. Vitkov: Russia is also strict in the matter of environmental protection; but the policies were implemented long time ago and nowadays most producers have already adapted to them. We face the necessity to comply with these requirements at the design stage of new productions. The cost for environmental safety is quite high: there are special requirements for equipment, level of staff training qualifications, etc. But already operating production facilities are rarely subjected to any external functional limitations. So we have never encountered this.

    Asian Metal: What is your outlook for the market of germanium products?

    Dr. Vitkov: Germanium is coming back to electronic engineering, industry that emerged on its basis in the 50s of the previous century. This return is a guarantee that market demand for Germanium at least won’t decrease.
    It is very likely that demand for Germanium will expand in the energy sector, not only for servicing space stations, but also for terrestrial needs.
    In addition, many experiments, which have not yet left the walls of laboratories, will one day turn into real applications, then total amount of consumed Germanium would exceed the current worldwide demand. So Germanium producers will still have things to do for years to come!

    Asian Metal: Thanks for sharing your opinion with us, we wish your business success and prosper!

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