OREANDA-NEWS. January 10, 2007. Director General of the State-Owned Corporation “Rostechnologii”, Chairman of the Board of Directors of VSMPO-AVISMA Corporation – Sergey Chemezov, Director General of VSMPO-AVISMA Corporation – Vladislav Tetyukhin, the USA Ambassador Extraordinary and Plenipotentiary in Russia – William Berns and President of Boeing-Russia/CIS – Sergey Kravchenko took part in the ceremony to sign the five-year delivery contract for titanium products between Boeing [NYSE: BA] and PSC VSMPO-AVISMA Corporation, Russia, reported the press-centre of VSMPO-AVISMA.

“This contract is a serious contribution to development of the large-scale program for procurement of Russian titanium to the amount of 18 billion US dollars from VSMPO-AVISMA – our key partner in Russia”, - said Sergey Kravchenko. “Boeing plan investments of 27 billion dollars in Russia over the next 30 years. This amount also includes payment for a number of contracts for delivery of products, materials and services of Russian companies, including cooperation in space industry and engineering works in Boeing Design Center in Moscow”.

VSMPO-AVISMA Corporation is Boeing’s largest Russian partner and supplier of titanium mill and semi-products. According to the Contract terms deliveries of titanium products, including billets, bars, sheets and plates shall start in early 2011 and continue till 2015, inclusively. Supplied products will be used at all models of Boeing commercial airplanes. Financial details of the contract are not given away.

“The Contract signed between Boeing and VSMPO-AVISMA became one more step on the way to development of mutually beneficial relations between our two countries”, - said V. Tetyukhin. “We intend to continue our strategic partnership with Boeing for development of the powerful alliance and cooperation aimed at increase in performance and manufacture of high quality titanium products”.

“I am very glad that the first fixed contract, prepared for signing by the company that is a part of the new State-Owned Corporation “Rostechnologii” was concluded with Boeing – our reliable and largest foreign partner of many years” – noted S. Chemezov.

This is the largest contract among a number of long term agreements between the two companies starting from 1997, when Boeing placed their first order at the largest Russian producer of titanium products.

Within the framework of the separate agreement in August 2007 Boeing and VSMPO-AVISMA announced the registration of the equally owned joint venture named Ural Boeing Manufacturing (UBM). UBM will machine titanium die forgings for its further use in manufacture of Boeing 787 Dreamliner aircraft. Initially the Companies declared their plans of creating the joint venture in April 2006, when the corresponding Memorandum of Intentions was signed.