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. Last Updated: 07/27/2016

Boeing, VSMPO-Avisma Start Venture for Dreamliner Parts

VSMPO-Avisma and Boeing started operations Tuesday at the joint venture they created in 2007 to produce titanium parts for the 787 Dreamliner.

Ural Boeing Manufacturing will have a capacity of 10 airplane kits per month, with production expected to start in September and reach full capacity in 2010, UBM head John Bern said Tuesday, Interfax reported.

The 50-50 joint venture, based in the Sverdlovsk region town of Verkhnyaya Salda, received a total investment of $60 million to $65 million, Bern said. On June 30, the Federal Anti-Monopoly Service approved Boeing’s request for permission to buy an additional 19.5 percent in UBM.

Prime Minister Vladimir Putin, who was on hand for the Moscow ceremony, said he was aware of “all of Boeing’ efforts to cooperate with its Russian partners, and we support them.”

Russian titanium makes up about 10 percent of the weight of the Dreamliner, a new plane that had its first flight postponed for the fifth time late last month. The parts produced at the plant will require further processing at other facilities of Boeing and its sub-contractors.

Russian Technologies chief Sergei Chemezov, whose state corporation controls VSMPO-Avisma, called the venture a “powerful, mutually beneficial alliance” at a ceremony in Moscow. Another ceremony was held at the plant in the Ural Mountains.

U.S. Commerce Secretary Gary Locke was quoted in the press release as saying the venture “confirms the scope of cooperation between Boeing and Russia, which started during the historic Soviet-American space expedition in the 1970s.”

Boeing  said it would invest $27 billion in Russia over the next 30 years: $18 billion for titanium, $5 billion on design services and $4 billion on other services from the aviation and space construction industries.