Boeing plans to spend a total of $27 billion in the next 30 years on direct purchases in Russia, the American company’s President of operations in Russia and the CIS Sergey Kravchenko told TASS news agency.
“Out of $27 billion that we are planning to spend on direct purchases in Russia within the next 30 years, $18 billion accounts for titanium purchases,” he said.
Currently, the company purchases most of the titanium products from Russia’s titanium producer VSMPO-Avisma. The respective contract expires in 2022.
According to Kravchenko, titanium from Russia is also used for wide-body aircraft B777 and B787 Dreamliner.
“On average, the raw materials are 22 tons of titanium for each aircraft. The forecasts for the increase of these volumes are directly related to the forecast of the increase in the rates of aircraft production,” Kravchenko said.
“The production of the 777X aircraft, which is planned to be commissioned in 2020, will require a lot of titanium, and we also plan that the titanium will be in demand for the aircraft we have not yet launched, the medium-haul Boeing NMA,” he added.
The company reported that it invests about $600 million annually in the Russian Federation and plans to spend about $5 billion on the acquisition of design services in the country as well as about $4 billion to purchase other products and services, including space programs.