Germany's MTU Aero explores alternative raw material sources to Russia
09/03/2022 17:42
By Abhijith Ganapavaram
March 9 (Reuters) - MTU Aero Engines AG MTXGn.DE is
exploring alternative suppliers to help it wean off raw material
dependency on Russia from 2023, the German aircraft engine maker
said on Wednesday, as the aviation industry rethinks supply
chains amid broad sanctions on Moscow.
"We cannot definitively assess the potential effects on
MTU's supply chain at present due to the overall volatile
situation," MTU said in an emailed statement.
MTU, which works with companies such as General Electric Co
GE.N and Raytheon's RTX.N Pratt & Whitney to manufacture
aircraft engines, procures about 10% of its titanium
requirements from Russia.
Another aircraft parts supplier, FACC AG FACC.VI , said on
Wednesday that it was procuring raw materials from sources other
than Russia.
"As the aerospace industry is ramping up fast and demand is
increasing, we will be in need of more supplies, but we are
confident that we can get these on the market," FACC Chief
Executive Robert Machtlinger told Reuters.
Sweeping sanctions against Russia for invading Ukraine have
led aerospace companies to take a deeper look at their vast and
often complex supply chains, as the big planemakers seek to ramp
production.
A particular focus is on the supply of titanium, a
lightweight but strong metal that is used widely in planemaking,
given Russia's position as a major supplier.
Boeing said on Monday it had suspended buying titanium from
Russia, while Airbus said it continues to use supplies from the
nation that hosts the world's largest supplier of the commodity,
VSMPO-AVISMA VSMO.MM . urn:newsml:reuters.com:*:nL3N2VA2V4
Brazilian planemaker Embraer SA EMBR3.SA said on Wednesday
it has no immediate concerns regarding the supply of titanium
but added that it was seeking alternative sources. urn:newsml:reuters.com:*:nS0N2UY00N
Canada's Bombardier Inc BBDb.TO has said it doesn't source
titanium directly from Russia. Instead, titanium on the business
jet maker's aircraft is obtained through its major suppliers or
distributors who primarily source a vast majority of the metal
outside of Russia.
(Reporting by Abhijith Ganapavaram in Bengaluru and additional
reporting by Allison Lampert in Montreal; Editing by Shailesh
Kuber)
((Abhijith.G@thomsonreuters.com;))