Ural Boeing Manufacturing suspended operations in 2022 - report

YEKATERINBURG. Feb 14 (Interfax) - Ural Boeing Manufacturing (UBM), a joint venture between Boeing and Russian titanium manufacturer VSMPO-Avisma Corporation set up for the machining of titanium forgings for Boeing aircraft, suspended operations after Boeing struck VSMPO-Avisma off its list of approved suppliers in 2022, UBM said in its annual report.

"VSMPO-Avisma Corporation, which is a shareholder of the company and the sole customer of the company, wrote a letter to Ural Boeing Manufacturing regarding the temporary suspension of production until further notice," the report says.

It says working with core equipment is currently impossible, since the use of these machines is "restricted by export licenses from the U.S. government and Japan."

However UBM management does not intend to liquidate the company or halt its activities, since there is an alternative to this. For example manufacturing cutting tools and industrial equipment is currently being considered, using equipment that is not subject to export control.

The company looking for alternative suppliers to replace those who left the Russian market "to reduce the risk of the company's ability to function in the uncertain environment that has emerged with foreign suppliers of components and materials."

The report says UBM's sales revenue plummeted 86.7% in 2022 to 42 million rubles and net losses were 658 million rubles, compared with net losses of 840.23 million rubles in 2021. The joint venture turned out 74 machined forgings in 2022, 559 in 2021 and 2,220 in 2020.

Boeing Co. suspended titanium purchases from Russia in March 2022.

VSMPO-Avisma is a vertically integrated titanium producer. According to its website, its biggest shareholder is Mikhail Shelkov, deputy chairman of the board of directors with 65.27%, while the state Rostec corporation owns 25% plus one share.