Saturday, October 10, 2015

Boeing's $27 billion titanium, tech deals with Russia

"Civilian" use OK for military contractor, says DID

Boeing's $27 billion titanium, tech deals with Russia


"Russia is the world’s largest supplier of titanium, but American military aircraft are restricted by law from using it. On the civil side, however, Boeing can do what it likes," writes Defense Industry Daily here (thanks to reader Keith Barger).

As Boeing noted in October here

"In July 2009, Boeing and VSMPO-AVISMA opened UBM as a 50/50 equity joint venture based in Verkhnyaya Salda, Russia. UBM is a state-of-the-art facility that machines titanium forgings for the world's most technologically advanced airplane – the 787.

"Boeing forecasts that over the next 30 years it will spend as much as $27 billion on Russian titanium, aerospace design-engineering services and a variety of other services and materials."

Boeing is one of the largest private employers in Delaware County, where it makes helicopter gunships at the Vertol plant in Ridley.

Excerpt from DID: "In order to secure its civil supply, build its manufacturing expertise, and break into a modernizing Russian market, Boeing signed deals with Russia’s state firm Rosoboronexport, and established a joint venture." Rosoboronexport was identified as a supplier to Syria's government, which is fighting a deadly civil war, in a Senate hearing last winter.

"That endeavor could produce up to $4 billion in parts orders from Boeing from 2007-2017; plus up to $18 billion in contracts for Russian titanium products, and $5 billion on Russian engineering services, by 2030.

"On the plus side, it led to Russian aircraft orders, as well as engineering innovations that could find military uses on both sides of the ocean."

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PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

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