OREANDA-NEWS. VSMPO-AVISMA Corporation the largest Russian producer of titanium, aluminum, and steel semi-finished products, and U.S. company Boeing, the world's largest aerospace company and leading manufacturer of commercial jetliners extended the current supply contract for titanium alloy semi-finished product for the next 10 years.

The original long-term agreement for supply of titanium products between VSMPO-AVISMA and Boeing was signed in 2010 till 2018.

“This is a very important milestone for both parties. Boeing is our strategic partner,” said Mikhail Voevodin, VSMPO-AVISMA CEO. “We are further expanding our business with the focus on high value-added products in order to support the growing production rate of Boeing aircrafts, including the new 787-9, 787-10 and 777X models, which have the increased number of titanium structural components.

The agreement, potentially worth billions of dollars, will support VSMPO-AVISMA's long-term strategy. For us, it means new long-term contracts, utilization of available capacities, and further development of production.”

Cooperation between VSMPO-AVISMA and Boeing began in 1993, when the Russian corporation became one of titanium suppliers for the U.S. company. In 2006, they signed an agreement establishing Ural Boeing Manufacturing in Verkhnaya Salda, a joint venture for machining of titanium forgings. Total investment in the project was about USD 70 million, and production began in 2009. Since then, the joint venture has been gradually increasing its production rate, improving the quality and adding value to machined parts. Establishment of a second production facility is currently being negotiated. VSMPO-AVISMA and Boeing have also established a joint innovative Technical Research Center for titanium.

VSMPO-AVISMA output in 2012 was 29,3K tons of titanium. Today, the Russian producer supports almost 40% of Boeing needs.

VSMPO-AVISMA Corporation is the world's largest vertically integrated titanium producer with complete production cycle, from raw material processing to the finished machined products with high added value. The Corporation supplies its products to 50 countries worldwide, and is deeply integrated into the global aerospace industry, being a key strategic supplier for many customers. The Corporation employs 20,000 people. VSMPO-AVISMA management has a majority ownership in the company (50% + 1 share) and Rostec has a blocking minority ownership (25% + 1 share).

Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners. Boeing products include helicopters, electronic and defense systems, satellites, launch systems, advanced information and communication systems. A major service provider for NASA, Boeing services the Space Shuttle and International Space Station. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. With corporate offices in Chicago, Boeing employs more than 165,000 people across the United States and in 70 countries.