07 August 2014

Russian titanium in the A350 program and EU sanctions.

Airbus Group CEO Tom Enders said the company isn't concerned about supply disruptions of titanium from Russia even as the European Union imposes new sanctions on Russia.

Airbus's relationship with Russian company VSMPO is "very stable," Mr. Enders said. “VSMPO is a key strategic partner."

Airbus purchases titanium raw material and forgings from VSMPO, the world's biggest titanium supplier.

"I do not expect the flow of it will be cut off short of all-out war," said Mr. Enders to  analysts when presenting the company's first-half results.

The European Union is imposing further sanctions on Russia over the country's efforts to destabilize Ukraine.

Airbus (and rival Boeing) rely heavily on titanium from Russia to build their jets. The A350  has 14% titanium content.

Mr. Enders said Airbus is continuing to explore mitigation actions –Airbus is in talks with potential alternative suppliers- while expressing "strong confidence" in the VSMPO ties.

All photos © Airbus

Based on the article “Airbus CEO Shrugs Off Concerns Over Supply Disruption Amid Sanctions” published in Dow Jones Business News.

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