Boeing not fretting about supply of Russian titanium
14 February 2022 - 18:25
byChen Lin
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A Boeing 737 MAX 8 after completing its first flight on January 29, 2016 in Seattle, Washington. Picture: GETTY IMAGES/STEPHEN BRASHEAR
Singapore — Boeing is not concerned about a potential disruption to Russian titanium supplies because of tensions over Ukraine, but is keeping a close watch on other industry supply chain pinch points, a senior executive said on Monday.
Boeing relies heavily on Russia’s VSMPO-AVISMA for the supply of titanium, a lightweight but strong metal used widely in plane making.
Russia has massed more than 100,000 troops near Ukraine’s border as it presses demands for a new security arrangement in Europe, prompting US and European officials to threaten a barrage of sanctions if it invades.
Boeing Commercial Airplanes head Stan Deal said the US manufacturer had diversified its titanium supply chain since 2014, when Russia was sanctioned for its annexation of Crimea from Ukraine, even though titanium was not directly targeted at the time.
“We’ve got a very diverse titanium supply now,” he told reporters in a briefing ahead of the Singapore Airshow, which starts on Tuesday.
“I will tell you that diversity gives us an opportunity to work through any disruption in the supply chain relative to titanium.”
Securing titanium has been made easier because fewer jets are being assembled as a result of the coronavirus pandemic, allowing plane makers to stockpile reserves.
Boeing has also reduced production of its 787 wide-body planes and paused deliveries due to manufacturing flaws and required inspections and repairs.
Deal reiterated Boeing had no time frame on resuming deliveries and the manufacturer remained in talks with customers on the 787s status.
He said as Boeing and rival Airbus ramped up production of narrow-body planes as market conditions improved from pandemic lows, his company was alert to possible pinch points in the supply chain.
“I continue to watch casting, forging, those areas,” he said. “We’re also watching the human capital side of the equation.”
Deal said there were early signs of a market recovery in the Asia-Pacific region, where international passenger traffic in 2021 remained 93% below 2019 levels due to border closures but freight revenues helped keep airlines afloat.
“We are already seeing engagement and discussions with customers in this region,” he said.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Boeing not fretting about supply of Russian titanium
Singapore — Boeing is not concerned about a potential disruption to Russian titanium supplies because of tensions over Ukraine, but is keeping a close watch on other industry supply chain pinch points, a senior executive said on Monday.
Boeing relies heavily on Russia’s VSMPO-AVISMA for the supply of titanium, a lightweight but strong metal used widely in plane making.
Russia has massed more than 100,000 troops near Ukraine’s border as it presses demands for a new security arrangement in Europe, prompting US and European officials to threaten a barrage of sanctions if it invades.
Boeing Commercial Airplanes head Stan Deal said the US manufacturer had diversified its titanium supply chain since 2014, when Russia was sanctioned for its annexation of Crimea from Ukraine, even though titanium was not directly targeted at the time.
“We’ve got a very diverse titanium supply now,” he told reporters in a briefing ahead of the Singapore Airshow, which starts on Tuesday.
“I will tell you that diversity gives us an opportunity to work through any disruption in the supply chain relative to titanium.”
Securing titanium has been made easier because fewer jets are being assembled as a result of the coronavirus pandemic, allowing plane makers to stockpile reserves.
Boeing has also reduced production of its 787 wide-body planes and paused deliveries due to manufacturing flaws and required inspections and repairs.
Deal reiterated Boeing had no time frame on resuming deliveries and the manufacturer remained in talks with customers on the 787s status.
He said as Boeing and rival Airbus ramped up production of narrow-body planes as market conditions improved from pandemic lows, his company was alert to possible pinch points in the supply chain.
“I continue to watch casting, forging, those areas,” he said. “We’re also watching the human capital side of the equation.”
Deal said there were early signs of a market recovery in the Asia-Pacific region, where international passenger traffic in 2021 remained 93% below 2019 levels due to border closures but freight revenues helped keep airlines afloat.
“We are already seeing engagement and discussions with customers in this region,” he said.
Reuters
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