Boeing and VSMPO agreed JV extending and R&D cooperation (US)

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Ray Conner, president and CEO of Boeing Commercial Airplanes  (left) and Mikhail Voevodin, CEO of VSMPO-AVISMA  (Credit Photo @ VSMPO-AVISMA )

Largest Russian titanium producer, VSMPO-AVISMA, Rostekhnologii subsidiary company, and American Boeing signed a memorandum to extend titanium procurement cooperation by Ural Boeing Manufacturing (UBM) joint venture expansion. Parties will also continue the R&D interaction regarding new technologies and alloys.

Currently the parties are processing 2 new alloys, which might be also used for Russian aero-space industry. Lately Boeing and AVISMA worked out 3 new technologies. Thus Ti5553 high-tensile alloy, created by VSMPO-AVISMA, allows to considerably lower aircraft weight. It is employed by Boeing-787 Dreamliner and may also be used for Russian airplanes. “The decisions made by VSMPO-AVISMA reduce fuel consumption due to weight cutting,” says Rostekhnologii CEO, Sergey Chemezov, “This would enhance cost effectiveness and air carriage reliability,  and environment performance improvement. Our developments will be applied to various international commercial aircrafts. Boeing cooperation expansion will help us to make better decisions for international aero-industry.” Rostekhnologii is Boeing’s reliable and valuable partner in Russia for many years. Together we achieve results that allow us to grow our businesses,” said Ray Conner, president and CEO of Boeing Commercial Airplanes. “Today’s agreements will allow Boeing and Rostekhnologii to further expand our partnership and our mutually beneficial cooperation.” Boeing and AVISMA will expand the UBM joint venture. The expansion will provide JV with increased capacity for machining the 737 landing gear beams. Supporting Boeing’s 737, the most popular commercial jet in the aviation history, is a significant milestone and business opportunity for UBM. The 4 new advanced technology machines have been purchased and are scheduled for installation at UBM in 2013 to be ready to support the 737 production rate increases. “Cooperation with the leading commercial aircraft manufacturer requires world-level specification, quality parameter and techno-economic instruction abidance,” marks Mikhail Voevodin, CEO of VSMPO-AVISMA, “Due to R&D center and high manufacture technologies implementation we reduced the cost of titanium parts and made them affordable for commercial aircraft-building. Earlier titanium could be used only for military-purpose equipment.” In 2012 VSMPO-AVISMA produced 29.5 thousand tons of titanium, 18% of which were procured to Boeing. Currently Russian enterprise meets up to 40% of the American company needs. Boeing contract performance in 2013-2018 will benefit1.5-2 billion dollars for VSMPO-AVISMA.

Rostekhnologii is Russian corporation established in 2007 for high-technology industrial goods of civil, military and dual-purpose development, producing and exportation facilitation. It comprises 663 companies which are to form 12 defence-industry complex and 5 civil industry sector holdings. The ventures of Rostekhnologii are located in 60 regions of Russia and cater for markets of over 70 countries. CEO of the corporation is Sergey Chemezov. Net profit in 2011 amounted to 1.55 billion rubles, tax liabilities totaled 100 billion rubles.

VSMPO-AVISMA is the only world titanium producer, which performs complete production cycle, the only company producing titanium in Russia and the largest in the world. The corporation is highly integrated into international aero-space industry and is a strategic titanium supplier for various companies. VSMPO has 300 international certificates for management quality, production methods and control, certain titanium and other material goods. It creates jobs for over 20 thousand people worldwide including the developed network of subsidiary distributer and service companies in America, Europe and Asia. CEO of the corporation is Mikhail Voevodin. The company is an integrated structure of Rostekhnologii.

Boeing cooperates with Russian aero-space industry for over 15 years. There are 2 large Boeing centers in Moscow. Over 1200 Russian engineers perform contracts in the company design center developing principal commercial aircrafts. R&D center is in charge of new technologies designing, testing, aerodynamics and noise research and IT project implementation. Moscow has the largest engineering center outside the USA. During all the time in Russia Boeing has performed 7 billion dollar service contracts. In next 30 years the company plans to invest 27 more billion dollars in Russia, including the 18 billion for titanium goods purchase, 5 billion for the designing services and 4 billion for other goods and services inter alia the ones for space programs.

Contacts of the press office

Corporation Russian Technologies
Ekaterina Baranova 
+7 (964) 772 91 27

Christina Lyakh
+7 (903) 240 23 29

Posted in Strategy.

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