Relationships cemented with Europe and USA (260 words)

Published: 6/26/2001

VSMPO and Airbus Industries have finally signed a long-term contract for the supply of titanium, having first announced the possibility of such a deal in July 2000. The five year deal is substantially longer than previous contracts of only one or two years and comes after the possibility of a contract was indicated as part of a $3.2 billion package, announced in April by EADS for the Russian aerospace industry. According to reports, the contract will result in VSMPO securing at least 50% of Airbus Industrie's needs. VSMPO has also announced that it is officially included in the Boeing's Sonic Cruiser programme. According to Vladislav Tetyukhin, General Director of VSMPO, the company's participation is very important, cementing as it does the growing relationship between the two companies. The agreement between Boeing and VSMPO, which was first signed in 1998 for rolled product, expires in 2003, although VSMPO first started working with Boeing in 1994. In 2000, VSMPO supplied 20% of Boeing's titanium needs, constituting 65% of its total output. According to Boeing's Thomas Pickering, quoted in local media, VSMPO will supply practically all the LG main struts for the B-777. Tetyukhin confirmed that, as part of the relationship between the two parties, in January 2001, VSMPO decided to sell 10% of the company to Boeing. The decision followed a collaboration agreement signed in June 2000 concerning the development of alloys and certifying VSMPO-produced components.

Article ID: 2608