Benzinga | Nov 15, 2021 10:46AM EST

Boeing, VSMPO-AVISMA Sign MOU Affirming VSMPO-AVISMA to Remain Largest Titanium Supplier for Current, Future Boeing Commercial Airplanes

Boeing (NYSE:BA) and Russian titanium producer VSMPO-AVISMA have signed a Memorandum of Understanding (MOU) affirming that VSMPO-AVISMA will remain the largest titanium supplier for current and future Boeing commercial airplanes.

Under the MOU signed by company leaders at the Dubai Airshow, Boeing and VSMPO-AVISMA will work together to:

* Increase utilization of their Russia-based Ural Boeing Manufacturing (UBM) joint venture; * Increase R&D investment and continue to develop new titanium alloys and technologies; * Explore new opportunities to expand VSMPO-AVISMA's role producing titanium parts and components beyond raw material or forging, for current and future Boeing commercial airplanes."The signing of the memorandum strengthens our position as a reliable partner to Boeing for many years to come. For us, it means confidence in our titanium products and recognition of their high quality," said Dmitry Osipov, CEO of VSMPO-AVISMA. "Stable long-term relationships with Boeing enable VSMPO-AVISMA to focus on expanding our investment program and developing our production capacity, as well as to continue implementing ESG-principles in our operations."

"Today we mark another important step in expanding our mutually beneficial cooperation with VSMPO-AVISMA," said Stan Deal, president and CEO of Boeing Commercial Airplanes. "VSMPO-AVISMA has been a reliable and valuable partner to Boeing for almost 25 years."

VSMPO-AVISMA is the largest titanium supplier for Boeing commercial production. Titanium parts from VSMPO-AVISMA are used on Boeing 737, 767, 787, 777 and 777X airplanes.