U.S. Ambassador to the Russian Federation John Tefft Highlights U.S.-Russian Cooperation During Visit to Rostec's VSMPO-AVISMA, Boeing's Key Russian Partner

UPPER SALDA, Russia, April 16, 2015 /PRNewswire/ -- U.S. Ambassador to the Russian Federation John Tefft looks to develop closer intergovernmental relations and aid business cooperation, a statement made during his visit to Rostec's VSMPO-AVISMA, Russia's premier titan manufacturer and a key partner of Boeing Corp.

The meeting, during which the comments were made, took place at VSMPO-AVISMA's manufacturing facility on April 14, 2015. The American delegation, led by Ambassador Tefft, included U.S. Consul General in Ekaterinburg Otto Hans Van Maerssen, Political/Economic Officer, Yekaterinburg Consulate General Timothy Timmons, Industrial Policy Specialist, Economic Affairs Section Sarah Rupert, among others.

The delegation met with Michael Voevodin, General Director, VSMPO-AVISMA, to discuss opportunities with Russian-American cooperation in the field of titanium technologies. The delegation visited key manufacturing facilities of VSMPO-AVISMA and U.S.-Russian Joint Venture Ural Boeing Manufacturing (UBM).

Speaking about purposes of his visit to the Urals region of Russia, Ambassador Tefft described a wide range, from developing closer intergovernmental relations to aiding business cooperation.

"VSMPO-AVISMA Corporation and its joint venture with Boeing, which I visited today, is a bright example of productive cooperation between Russia and U.S. Over past decades both companies were developing joint technological solutions in aeronautic field, engaging thousands of Russian and U.S. professionals in the process. VSMPO-AVISMA manufactures a range of products that can't be matched by any other manufacturing facility in the world. Jointly with Boeing, a high tech manufacturing operation has sprung up, and three unique titanium alloys were developed as a result.  A long term partnership agreement going through 2022 has been signed. It's critical that this strategic partnership between these two companies has been built on mutual business interests and mutual trust."

During his meeting with Ambassador Tefft, Mr. Voevodin described VSMPO-AVISMA development strategy, and main avenues of cooperation with U.S. companies.

"We have been consistently increasing industrial capacity of VSMPO-AVISMA and the degree of our processing, increasing the breadth of our product line, all in response to growing demand from our largest customers, which include some of the largest companies in the U.S. We have been working with Boeing for almost three decades.  Our partnership, our supply contracts, as well as our joint research center and UBM, all make up for a convincing case of international cooperation, a synergy that benefits both U.S. and Russian economy," said Mr. Voevodin.

"And now that we have cleared all technical and administrative hurdles, we are launching a joint venture with another U.S. industrial giant – Alcoa. This joint venture will represent the next stage in cooperation between U.S. and Russian companies aimed at satisfying growing demands of international aerospace companies."

Fact Sheet:

VSMPO-AVISMA has been working with Boeing since 1990s. In 1993 Boeing awarded VSMPO with the first ever quality certification in Russia. In 1998, Boeing and VSMPO signed their first long term agreement for titanium product supplies. In 2009 the two companies opened a joint venture aimed at finishing titanium forgings in Upper Salda (Sverdlov Region, Russia).

Based on existing contracts with Boeing, VSMPO-AVISMA supplies 35 percent to 40 percent of titanium half finished products, and 50 percent to 100 percent of titanium forgings, to Boeing Commercial Airplanes. VSMPO-AVISMA supplies titanium forgings for all Boeing's commercial aircraft business units.

VSMPO-AVISMA operates on industrial titanium market in tandem with another American partner, Allegheny Technologies. Today their joint venture, UNITI LLC, formed in 2003 in the U.S., controls 30 percent of international market for titanium products. UNITI supplies industrial clients with quality high tech titanium products. In 2013, the company signed a long term contract with American Universal Stainless & Alloy Products for finishing its products and supplying them to NF&M, a VSMPO-AVISMA subsidiary. NF&M finishes the products to manufacture small diameter specialty bars and wire, as well as forgings for medical and aerospace industries.

In October 2013 VSMPO-AVISMA and U.S. aluminum giant Alcoa signed a joint venture agreement to manufacture half finished products from aluminum and titanium alloys, first and foremost large scale forgings, including parts for landing gear and wing structure.   

About VSMPO-AVISMA

VSMPO-AVISMA is the world largest manufacturer of titanium that deploys a full technological circle, from raw material processing to manufacturing finite finished products. The company employs over 20,000 professionals. Internationally, the company is among the leaders in titanium product manufacturing. VSMPO-AVISMA's management owns the majority stake in the company, Rostec owns 25 percent plus 1 share – the blocking vote package.

About Rostec

Rostec State Corporation has been established in 2007 as a Russian corporation promoting development, production and export of high tech industrial civil and military goods. It is comprised of 700 enterprises organized into nine holdings in the defense industry and five non-military holdings.  Rostec portfolio includes such well-known brands as RosOboronExport, AvtoVaz, Kamaz, Russian Helicopters, VSMPO-AVISMA and many others. Rostec's enterprises are located in 60 regions of Russia and operate in over 70 countries. In 2013, Rostec revenue was 1.04 trillion rubles, net profit – 40 billion rubles, and total tax payments exceeded 138 billion rubles.

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SOURCE Rostec