VSMPO-Avisma Corporation and Boeing signed a long-term contract for the supply of titanium products, the VSMPO press service told Interfax.
Under the terms of the contract, VSMPO-Avisma will supply Boeing and its suppliers with titanium forgings to meet the needs for the production of civil aircraft of various models: 787 Dreamliner, 777, 767 and 737.
In the message of the Russian corporation it is specified that the joint venture of VSMPO-Avisma and Boeing - Ural Boeing Manufacturing (UBM) in Verkhnaya Salda (Sverdlovsk region) will carry out machining of a significant part of the products.
"We have reached another important milestone, continuing our mutually beneficial cooperation with " VSMPO-Avisma ". VSMPO has been a reliable strategic partner of Boeing for many years, " Boeing President in Russia and the CIS Sergey Kravchenko.
VSMPO-Avisma is expected to provide sales support and services under these contracts, including logistics, machining and timely delivery of titanium products through its global sales and distribution network located in the USA, UK, Europe and China.
"The conclusion of the agreement reflects our commitment to long-term relations between " VSMPO-Avisma "and Boeing. Our company has been closely cooperating with Boeing for the third decade. We highly value our partnership and are interested in their further development, " - noted General Director of "VSMPO-Avisma " Dmitry Osipov.
In mid-April 2020, the corporation announced a change in the production program due to COVID-19, reduced the annual plan for the production of commercial titanium products from 39 thousand tons to 26.5 thousand tons, titanium sponge - from 44 thousand tons up to 35 thousand tons. The company has not yet published production figures for 2020.
"VSMPO-Avisma " is the main supplier of titanium for many companies in the global aerospace industry, including Boeing. In 2019, the United States accounted for about 40% of VSMPO-Avisma's export deliveries. Earlier it was reported that Boeing buys about 35% of the required titanium from the company, European Airbus - up to 65%, Brazilian Embraer - up to 100%. The main beneficiary of the corporation is Deputy Chairman of the Board of Directors Mikhail Shelkov, his structures control 65.27% of the shares of VSMPO-Avisma. A blocking stake - 25% plus 1 share - belongs to the state corporation "Rostec ".
In December, the US Department of Commerce included PJSC " Corporation "VSMPO-Avisma " in the list of "military end-user list" imposing restrictions on the export of technologies. In January this decision it was canceled : Mintorg referred to the results of an audit that found that "the organization does not meet the criteria for military end users ".
