Urals titanium for Boeing 787

In July, world’s largest titanium producer, Russian VSMPO-Avisma Corporation, and Boeing launched a joint venture named Ural Boeing Manufacturing (UBM) in Verkhnyaya Salda. The new plant will do initial machining of titanium forgings that are used for production of Boeing 787 airliner. The new JV will receive the titanium forgings from VSMPO-Avisma located in Verkhnyaya Salda while the final machining of the components will be done at the plant of Boeing in Portland in the US and at plants of other subcontractors. The annual output will correspond to the production program of this airplane.
Boeing and VSMPO-Avisma announced the plans to set up a joint venture in 2006, but they were shaped legally a year later — in July of 2007 each partner received a 50% block of shares in the new company. Boeing does not disclose investments in the joint venture but experts point out that investments in such production facility may amount to about $100 million.
Press secretary of Boeing Russia Dmitry Khrol explains, "The advantage of the joint venture’s location in Russia is machining of components in the vicinity of the titanium production source, which is more beneficial from the economic standpoint." From the technological standpoint one of the advantages is recycling of titanium shavings from machining at VSMPO, which "allows creation of a closed-cycle chain of suppliers for maintenance of production of titanium forgings and other kinds of products." During machining of titanium semi-finished products in the US it was necessary to bring the remaining material to one of the local machining contractors.
European aircraft manufacturer Airbus did not announce plans to set up a joint venture with VSMPO-Avisma yet but in April the aircraft maker signed a framework agreement on purchase of titanium worth $4 billion until 2020. Under this contract VSMPO-Avisma will supply round and flat rolled titanium, as well as forgings for all existing models of Airbus including А350XWB.    

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