Airbus announced that it has signed a Memorandum of Understanding (MoU) with VSMPO-AVISMA, a major supplier for Airbus, to manufacture and supply value-added titanium products.
The contract expands the long-term partnership of both the companies and ensures the strategic position of VSMPO-AVISMA in the EADS/Airbus supply chain.
Based on the agreement, Airbus and VSMPO-AVISMA have planned to expand their activities from the delivery of the titanium raw material and forgings to value-added products. The MOU includes different strategic collaborations, including development of new alloys for use in the EADS/Airbus programs. The agreement also includes joint development projects, combined as the "Vertical Integration Project". This project extends the activities of VSMPO-AVISMA to rough machining or pre-machining of titanium components for the vertical supply chain.
VSMPO-AVISMA’s General Director, Mikhail Voevodin stated that the development of a vertically integrated supply chain network is a part of the company’s strategy. The initiative will allow VSMPO-AVISMA to better control the product quality and costs during the entire production cycle. The company is one of the significant suppliers of Airbus and satisfies 60% of their titanium needs in forgings or semi-finished products.
In 2009, VSMPO-AVISMA and EADS/Airbus have entered a long-term agreement till 2020 for the supply of titanium to Airbus and other EADS businesses. Based on the agreement, Airbus controls the distribution activity to the overall EADS supply chain.
Source: http://www.airbus.com/