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VSMPO-Avisma has said its contracts with Airbus for the supply of rolled titanium alloys are still intact and cannot be cancelled “for no reason”.
In an interview published in the company’s corporate newsletter, ceo Mikhail Voevodin stated that VSMPO has contracts through to 2020 with Airbus and that it is unlikely the aircraft manufacturer would break the terms of these contracts, understood to be worth $4 billion.
He added that Airbus would be subject to penalties if the terms of the contracts were breached, although he did not specify how large these penalties would be.
Referring to comments made by Airbus ceo Günter Butschek on looking for alternative supplies of titanium should the EU extend sanctions on Russia, Voevodin said it could take VSMPO two to three years to find new buyers for its products if Airbus exits the contracts.
However, he added that it will not be possible for Airbus to find replacement material that is 100% adequate in less than three to five years.
Voevodin also said that VSMPO has no problems with continuing its sales in Ukraine.
Its relations remain stable with its Ukrainian, US and European partners as all its contracts are “mutually beneficial”, Voevodin added.
“Politics is politics and business is business… our partnerships [in Ukraine] are a two-way street. None of the participants are interested in congestion and traffic jams,” he said.
There have been some issues over payments, however, and the company has been attempting to neutralise this by supplying goods only after the receipt of funds.
Claire Hack chack@metalbulletin.com Twitter: @clairehack_mb