Russian Technologies Corporation will decrease its share in the capital of VSMPO-AVISMA to blocking shares, and management participation in the capital of VSMPO-AVISMA Corporation will increase to 50% + 1 share. The deal amounts to approximately US$965 million.
“We expect production volume to increase 10-15% yearly until 2015,” said Sergey Chemezov, Russian Technologies CEO. “Since the introduction of a new management team led by Russian Technologies, VSMPO-AVISMA has signed strategic contracts for supply of titanium with Boeing, Airbus, Embraer, Rolls-Royce.”
As major shareholders of the company, VSMPO-AVISMA will continue to increase its participation in the world titanium market, both through increase of volumes supplied to the largest aerospace companies and through expansion to developing markets, such as medical, motor and oil & gas. According to Mikhail Voevodin, VSMPO-AVISMA CEO, the company presently controls around 30% of titanium market. “Purchasing mining companies in the Ukraine will give us a permanent source of raw materials," he said. "We plan further large investments in this field in the future.”
At the end of October, VSMPO-AVISMA, Rostekhnologii subsidiary company, and American Boeing signed a memorandum to extend titanium procurement cooperation by Ural Boeing Manufacturing (UBM) joint venture expansion.
Currently the parties are processing two new alloys, which might be used in the Russian aerospace industry. The Ti5553 high-tensile alloy, created by VSMPO-AVISMA, can considerably lower aircraft weight. It is used in the Boeing-787 Dreamliner and may also be used for Russian aeroplanes.
“The decisions made by VSMPO-AVISMA reduce fuel consumption due to weight cutting,” Chemezov explained. “This would enhance cost effectiveness and air carriage reliability, as well as environmental performance improvement.”
In 2012 VSMPO-AVISMA produced more than 29000 tons of titanium, 18% of which were procured to Boeing.
