VSMPO-AVISMA Corp. and Boeing Company have signed a memorandum of understanding regarding a proposed joint venture for machining of titanium forgings.
The MOU outlines a proposed 50/50 equity joint venture to be located in Verkhnaya Salda, Russia to machine complex titanium forgings that VSMPO-AVISMA will manufacture for Boeing’s 787 Dreamliner. Final machining of die forgings will be carried out at Boeing division in Portland and at the facilities of other subcontractors of this aircraft-building company.
“Establishment of the joint venture is a new stage of development and a good opportunity for the corporation to increase its competence in the new field of activity—production of parts very close to the finished product. The joint venture will use state-of-the-art practices both in cooperation with Boeing and its subcontractors and with domestic aircraft building companies which will show interest in the project,” Vladislav Tetyukhin, director general of VSMPO-AVISMA, stated after signing the MOU.
Officials say VSMPO-AVISMA and Boeing will work closely together to implement the best practices to establish world class levels for titanium machining efficiency, quality, delivery, and costs. In addition, titanium chips from the machining process will be recycled back to VSMPO-AVISMA, creating an efficient, closed loop production cycle.
“Fulfillment of this agreement will raise our strong relationship with VSMPO-AVISMA to even higher level,” said Michael J. Cave, vice president/general manager of Boeing Commercial Airplanes. “We will be able to increase efficiency and reduce costs of titanium components manufacture, while VSMPO will be able to enhance its titanium production capacities.”
VSMPO-AVISMA reportedly is the world’s largest producer titanium products, mostly for aerospace application. Officials claim AVISMA produces 32% of the global titanium sponge product, which VSMPO converts into value-added products, including forgings. Up to 80% of the corporation’s output are exported.