VSMPO-AVISMA to re-orient its sales policies to other markets, tracks after suspension of contract with Boeing - VSMPO-AVISMA CEO

YEKATERINBURG. March 7 (Interfax) - VSMPO-AVISMA Corporation, a Russian supplier of titanium, has confirmed the suspension of the contract with Boeing.

"We are sincerely sorry that the contract with our long-term partner has been suspended. Observing the situation in the country and in the world, we were ready for such development of events, and the Corporation has all capabilities and resources to reduce the risks. We will now reorient our sales policies to other markets and tracks," VSMPO-AVISMA CEO Dmitry Osipov told Interfax.

"The sphere in which titanium is used is rather broad, from medicine to consumer and food industry. We can quickly adapt and we are certain that our unique technological developments in the sphere of production and processing of titanium alloys will always be in demand on other markets. We are already working in that direction," he said.

According to earlier reports, the U.S. aviation industry concern Boeing Co. suspended the purchase of titanium from Russia.

"Boeing has accumulated a considerable supply of titanium, including thanks to Boeing's initiative to form a pool of suppliers worldwide, which has been implemented for several years. Boeing has now suspended the purchase of titanium from Russia," a company representative told Interfax.

"The supply of titanium and a network of alterative suppliers enable Boeing to ensure continual production of commercial aircraft. The company will continue taking steps to ensure the stability of its business in the long-term perspective," he said.

It was reported in November 2021 that VSMPO-AVISMA Corporation and Boeing had signed a memorandum for the supply of titanium and expansion of cooperation for the coming years. In particular, the parties agreed to increase the work load of the joint stock company Ural Boeing Manufacturing (UBM) in Verkhnaya Salda, Sverdlovsk region, and investment in research and development, and also continue creating new titanium alloys, developing and introducing innovative technologies.

Besides, the production at VSMPO-AVISMA of additional titanium nodes and components for the existing and prospective models of civil Boeing planes was discussed.

Titanium components manufactured by VSMPO-AVISMA are used in the construction of Boeing-737, -767, -777, -787, and 777X commercial aircraft.

The main beneficiary of VSMPO-AVISMA is deputy board chairman Mikhail Shelkov. His structures control 65.27% of the shares in VSMPO-AVISMA. The state corporation Rostec holds a blocking package, 25% plus one share.