By Robert Wall
Airbus Group NV (AIR.FR) Chief Executive 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. 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," Mr. Enders told analysts Tuesday 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. The measures gained
added impetus after the July 17 downing of Malaysia Airlines Flight
17 that Western officials blame on pro-Russian separatists in
eastern Ukraine. Russia denies the charge.
Airbus's commercial plane unit and rival Boeing Co. (BA) rely
heavily on titanium from Russia to build their jets. Titanium is
increasingly important on commercial airliners as Airbus and Boeing
increase their use of composites.
The structure of Airbus's new A350 model, now in flight testing,
has 14% titanium content. Titanium has properties that make it
particularly useful in bridging composite and aluminum
structures.
Mr. Enders said VSMPO is a "key strategic partner."
Airbus for at least two months has been examining potential
mitigation actions should disruptions arise. Gunther Butschek,
chief operating officer for the Airbus commercial airplane unit,
said in May the company was in talks with potential alternative
suppliers.
Mr. Enders said the company is continuing to explore mitigation
actions, while expressing "strong confidence" in the VSMPO
ties.
Write to Robert Wall at robert.wall@dowjones.com
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