Airbus pens $4bln titanium procurement deal with Russia’s VSMPO-Avisma
MOSCOW, Russia – Airbus, an affiliate of the European giant EADS, and one of leading aviation-products and gadgets manufacturing corporations in the world, and the world’s leading producer of titanium, VSMPO-Avisma — the Russian specialized state enterprise that is a subsidiary of the state corporation, Russian Nanotechnologies (Rosnano) — have finalized all the formalities necessary to start long-term mutually beneficial cooperation in the aviation construction industry.
Specifically, with Russian Prime Minister Vladimir Putin watching, the two companies penned a groundbreaking, long-term contract in the Russian White House, the seat of the Russian federal government in downtown Moscow, according to which VSMPO-Avisma will supply top-quality titanium products to Airbus. The gross cost of the contract, which was signed by Airbus CEO Tom Enders and Sergei Chemezov — the Rosnano CEO, who also doubles as the VSMPO-Avisma board chairman, was valued at $4bln, making it a record deal on titanium in the aviation construction industry.
Commenting on the contract, Putin noted the increase and growth rate of the volume and scope of cooperation between Russia’s VSMPO-Avisma and EADS’ Airbus, calling them a ‘good trend and vital component’ of interactions in the hi-tech sector. “Today's event, and particularly, the signing of a contract for several years ahead, along with the increase in volume and depth of processing, to which this metal will be subjected, is a very good sign,” the Russian prime minister said. “Thanks to this transaction, Airbus‘ share in our company’s overall total titanium export sales will now be in the region of 15-25%, while our share in Airbus’ gross demand for titanium will be almost 60%.”
In his reply speech, the Airbus CEO noted the strategic nature and value of the ongoing cooperation with Russia’s VSMPO-Avisma and also the growing role of titanium in the aircraft construction industry as well as his interest in boosting the scope of Airbus’ cooperation with other Russian companies in related industries. “Naturally, today's event is far from being the limit of our cooperation with VSMPO-Avisma and Russia,” he added. “This is because Airbus has rather far-reaching plans with its partners from VSMPO-Avisma as well as with its other Russian partners in the aircraft construction industry.”
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