LOS ANGELES 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.
Pittsburgh-based ATI 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 VSMPO-Avisma Corp.
ATI chairman, 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).
Boeing executives 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)