Allegheny Technologies Inc. (ATI) has extended its long-term
titanium supply agreement with Boeing Co. beyond 2018 in a deal
that could expand the proportion of value-added products and
advanced alloys it ships to the aircraft builder.
An ATI spokesman, who
declined to disclose the duration of the deal or the amount of
titanium involved, confirmed that ATI last extended its deal
with Boeing in 2011.
is one of three major suppliers of titanium ingot and mill
product to Chicago-based Boeing under its system of long-term
agreements that the aircraft builder initiated about 15 years
ago. The others are Portland, Ore.-based Precision Castparts
Inc.s Titanium Metals Corp. and Russias
president and chief executive officer Richard J. Harshman said
the new agreement "enhances and solidifies our strategic
relationship" with Boeing and recognizes the need for increased
value-added titanium and "supply chain efficiency."
ATI said the extended
agreement "provides opportunity" for it to supply more of its
advanced alloys to Boeing. Among these may be ATI Titanium 425
(4-aluminum/2.5-vanadium/1.5-iron/0.25-oxygen), which the
company claims is the first high-strength titanium alloy that
is cold rollable and cold formable and could help cut the final
cost of parts production (
amm.com, Aug. 2, 2010).
indicated the company generally has been buying titanium at
contract minimums, although they recently said they expect to
have "ordering and consumption balanced out" by 2015 (
amm.com, Oct. 11)