Boeing and VSMPO-AVISMA Signed an Agreement on Establishment of the Joint Venture and Appointed the Managing Director

The representatives of the Boeing Company and VSMPO-AVISMA Corporation announced about establishment of the joint venture Ural Boeing Manufacturing (UBM). JV UBM will be engaged in machining of titanium die-forgings for Boeing 787 Dreamliner. Initially the parties declared about their plans to create a joint venture and signed memorandum of intentions in April, 2006.
Mr. Gary A. Baker was appointed General Director / General Manager of the joint venture. Mr. Baker is 51 years old. He has 27 years of work experience with Boeing where he was promoted and held a number of leading positions. Mr. Baker has gained significant experience in different fields. In particular, he was the head of production and quality control departments. Besides, he is very well familiar with such aspects as supply chain management and project management. Mr. Baker will move to the head-office of the joint venture in Verkhnaya Salda at year-end 2007. «Partnership of Boeing and VSMPO-AVISMA, which is realized through JV UBM, will extend our capabilities in titanium parts manufacture and improve production rate and efficiency that will make us a global scale enterprise», said Gary Baker. «Currently we are building the production facility with the area of 8900 sq. meters and office building with the area of 2000 sq. meters. Production facility will be fitted with the state-of-the-art equipment».
Sergey Kravchenko, President of Boeing Russia / CIS, stated: «Establishment of the joint venture between Boeing and VSMPO-AVISMA is another clear evidence that our company strives to strengthen its international ties and build long-term relationship with the key suppliers. Russia remains important and valuable partner of the Boeing Company and we put every effort in maintaining close cooperation with our Russian partners, suppliers and customers».
Vladislav Tetyukhin, Director General of VSMPO-AVISMA Corporation, said: «Boeing and VSMPO are building efficient and mutually beneficial co-operation. Thanks to production and managing experience of Mr. Baker, JV UBM will enable VSMPO to expand its production capabilities and will enable Boeing to improve production rate of machined titanium parts».
The joint venture with the equal ownership interest will start rough machining of titanium die-forgings in 2008. Final machining will be performed by Boeing facility in Portland, Oregon and some subcontractors.
Establishment of the joint venture between Boeing and VSMPO-AVISMA is the next stage of cooperation between the companies, which dates back to 1997.
By agreement between the parties, financial terms of the deal are currently considered confidential and are not disclosed.