Boeing ready for 'unlikely' titanium disruption

Apr 24, 2014 | 02:29 PM | Frank Haflich

Tags  Boeing, aerospace, titanium, VSMPO, Greg Smith, Frank Haflich

LOS ANGELES — Boeing Co. says it is prepared for a worst-case scenario that political events in eastern Europe could disrupt its titanium supply chain.

Boeing executives were asked during a quarterly earnings conference call if there was "any risk to deliveries or titanium this year" based on its possible exposure to current political events in Ukraine and Russia.

"Right now everybody is focused on Russia, as we are, and we have good contingency plans in place if some unlikely but possible outcomes occur there," chief financial officer Greg Smith said.

Smith didn’t discuss any details of Boeing’s contingency plans, but sources at some U.S. titanium producers and other links in the titanium supply chain, such as forgings producers, confirmed they have heard from Boeing about their ability to fill gaps if future U.S. sanctions result in the disruption of titanium from Russia. Russia’s VSMPO-Avisma Corp. is one of three titanium suppliers to Boeing’s commercial airliner programs under the Chicago-based company’s system of long-term supply agreements.....

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