Boeing is considering alternative sources for obtaining Titanium as Western sanctions limit supply out of Russia.
Following the Russian invasion of Ukraine Boeing has suspended all imports of Russian titanium which accounted for nearly one-third of the company’s supply; however, Boeing still purchases titanium from one of Putin’s former KGB colleagues Sergey Chemezov.
Increasing Western sanctions on Russian oligarchs may soon result in this source of titanium being closed off as well. A Boeing spokeswoman stated that “Our inventory and diversity of titanium sources provide sufficient supply for airplane production, and we will continue to take the right steps to ensure long-term continuity,” as the company still has reliable sources coming out of the U.S., Japan, and China.
Boeing initially began to invest heavily into Russia following the collapse of the Soviet Union in 1991 despite warnings that geopolitical alterations could result in Russia becoming an unusable source of the metal.
The company has accumulated a relatively large stockpile of titanium as demand for airplane production has been limited in recent years, however, any company with supply chain ties to Russia is likely to struggle within the coming months. Boeing CEO David Calhoun “flagged Boeing’s titanium supply as a possible medium-term risk in a January call with Wall Street analysts. ‘As long as the geopolitical situation stays tame, no problem, if it doesn’t, we’re protected for quite a while, but not forever.’”
Source: Brookfield Brief
