RTI Announces Airbus Supply Deal( NILES, Ohio - May 9, 2006 ) RTI International Metals, Inc., (NYSE:RTI) announced today that it has entered into a 10-year agreement with Airbus for the supply of titanium products that will support the production of the Airbus family of commercial aircraft, including the new A-380 and A-350 programs. The contract is expected to generate revenue in excess of $800 million over its term.
Under the agreement, RTI will produce forging quality billet, bloom, and a full range of flat-rolled product from Airbus supplied input material. Shipments will begin in late 2006 and exceed 5 million pounds per year by 2008. Additional value-added products and services are currently under discussion.
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In connection with the agreement, RTI will begin a $35 million facilities expansion program, including new and upgraded melting and forging capacity. Completion is expected during the third and fourth quarters of 2007. Airbus may participate in the investment.
"This agreement represents a new level of cooperation in a long standing supply relationship with Airbus. We at RTI are excited about the opportunity to play a larger role in supplying products and services to the Airbus family and its customers," commented Timothy G. Rupert, President & CEO.
"The long-term agreement is a key part of Airbus' strategy of partnering in innovative ways with strong companies to ensure the best materials and components for our aircraft," said Henri Courpron, Airbus' Executive Vice President - Procurement. "RTI International Metals has been an Airbus partner for as long as we have been using titanium in our aircraft, and we are pleased to be expanding the relationship for the benefit of our production and - ultimately - for the benefit of our airline customers."
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Source : RTI