VSMPO, Boeing sign long-term contract to supply titanium products
YEKATERINBURG. Jan 26 (Interfax) - PJSC VSMPO-Avisma Corporation and Boeing have signed a long-term contract to supply titanium products, the Russian titanium producer's press service told Interfax.
The contract stipulates that VSMPO-Avisma will supply Boeing and its suppliers with titanium forgings to meet the requirements to manufacture civil aircraft of various models, specifically Boeing's 787 Dreamliner, 777, 767, and 737 airplanes.
VSMPO-Avisma said in a press release that Ural Boeing Manufacturing, a joint venture between VSMPO and Boeing, would machine many of these forgings at its facility located in Verkhnaya Salda.
In addition, as part of a previously signed separate contract VSMPO will continue to supply titanium mill products to Boeing and its participating suppliers.
"This new contract is reflective of our commitment to the long term relationship between VSMPO and Boeing," said Dmitry Osipov, CEO of VSMPO. "Our company is in its third decade of working very closely with Boeing on providing increasing levels of support, technology and services to Boeing Commercial Airplanes, and we look forward to continuing supporting and partnering with Boeing," he said.
"Today we mark another important step in further continuing our mutually beneficial cooperation with VSMPO," said Boeing president in Russia and CIS, Sergey Kravchenko. "VSMPO has been a reliable and valuable partner for Boeing for many years," he said.
VSMPO will provide sales and service support of these contracts, including logistics, cutting, and just-in-time delivery services through its global sales and distribution network locations in the United States, United Kingdom, Europe and China.
VSMPO-Avisma said in April that it had to slash its 2020 commercial titanium production target from 39,000 tonnes to 26,500 tonnes and its titanium sponge target from 44,000 tonnes to 35,000 tonnes due to the Covid-19 pandemic. The company has not yet unveiled its 2020 results.
VSMPO-Avisma is the main supplier of titanium products for many companies in the global aerospace industry, including Boeing, Airbus and Embraer. VSMPO-Avisma deputy board chairman Mikhail Shelkov is the beneficiary of 65.27% of shares in the company, and state corporation Rostec holds a stake of 25% plus one share and the free float is 9.73%.