On Boeing in Russia: "It is the future that holds the most promise" says Albaugh

Following is a selection of remarks that I delivered on Friday, September 17, 2010, at the 2010 Sochi International Investment Forum:

Boeing invests and has a presence in Russia because this country has some of the best engineering and manufacturing capabilities in the global aerospace industry as well as the natural resources so important to our products.

The Boeing Design Center was founded in Moscow in 1998 with 12 very talented Russian engineers.  Today this center creates jobs for nearly 1,200 Boeing employees and 800 subcontractors. And as part of Boeing’s global engineering team, the Moscow Design Center contributed to the 777 and 747 airplane programs—and has played a major part in the design of the 787, the world first carbon-fiber airplane.

For every 787 Dreamliner built by Boeing, some 20 tons of titanium parts manufactured by our main Russian partner VSMPO goes into that airplane. Many of these parts—including the largest forgings on the airplane—are made of high-tech titanium alloys jointly developed and integrated by Boeing and Russian Technologies specialists.

In June, we announced that Boeing will participate in a Skolkovo Innovation Center together with our Russian partners. Over the next few decades, we will invest more than $18B USD for titanium products and technologies with our strategic partners VSMPO and Rostechnologii Corporation. We increased our partnership with VSMPO when the Russian Technologies Corporation became the main shareholder of a leading titanium manufacturer.

Together we created a joint research center for titanium technology and materials—a partnership that further strengthens our economies and commercial interests. Through this innovative center, Boeing and our strategic partner Rostechnologies are conducting joint development of new titanium alloys and technologies.  These materials and technologies will be used in the production of Boeing commercial airplanes and in the Russian aircraft-manufacturing industry.

We are also expanding our cooperation with Russian Technologies in the areas of commercial airplanes procurement, after-delivery support, spares parts distribution and training. As part of our long-term partnership Boeing will continue to assist Russian Technologies by sharing management best practices, processes and technologies.  

As a business partner with Russian industry, Boeing also strongly supports Russia’s membership in the World Trade Organization. We believe this will foster growth in trade and investment, and help Russia to build and sell products in an increasingly competitive global marketplace.

Our past partnerships have brought us much success. Our work today provides still more opportunities. But it is the future that holds the most promise -- a future in which businesses from around the world are investing in Russia because of the unique talents of her scientists, information technology specialists and engineers. 

We are excited to be a part of that future—a future that will benefit not only Russia and Boeing, but innovation around the world.

Editor’s Note:  Jim Albaugh is executive vice president of The Boeing Company and president and chief executive officer of Boeing Commercial Airplanes.