Forex Analysis & Reviews: 14.02.2022 - Boeing Co: rebound course...

14.02.2022 01:31 PM

Boeing Co: rebound course and probable titanium supply disruptions

The latest political set up, as well as the pandemic that has restricted most life aspects, are serious concerns for any business owner. Many companies face the challenge of adapting their business strategies so that they can function in the new context.

Boeing Co. is a client of Russia's VSMPO-AVISMA for supplies of titanium, a light but strong metal that is widely used in plane production.

Being dependent mostly on Russian titanium supplies, Boeing Co. might face some metal supply problems due to the tense situation between Russia and Ukraine.

Recently, Russia has dispatched more than 100,000 troops near Ukraine's border, with demands for a new security system in Europe, causing U.S. and European officials to threaten with sanctions in case of invasion.

According to Stan Deal, the head of Boeing Commercial Airplanes, the company has diversified its titanium supply chains since 2014. The reason for this was the Crimea's annexation from Ukraine. As a result, Russia was sanctioned, so Boeing Co. considered diversifying the supply of the metal to avoid possible supply disruptions.

"We've got a very diverse titanium supply now. I will tell you that diversity gives us an opportunity to work through any disruption in the supply chain relative to titanium.", he said.

The problem with titanium supply doesn't bother the plane makers since there are fewer planes being assembled as a result of the coronavirus pandemic. And it allows them to stockpile titanium.

Besides, they decided to reduce 787 wide-body planes production and pause deliveries due to manufacturing defects and the repair necessity. There is no timeframe for resuming deliveries at the moment.

Deal also said that Boeing has been gradually increasing production of narrow-body planes with market conditions improving after pandemic lows. This process requires a great caution and awareness of any possible problems in the supply chain.

"I continue to watch casting, forging, those areas," he said. "We're also watching the human capital side of the equation."

Deal noted that there were first signs of market revival in the Asia-Pacific region, where international passenger traffic during 2021 was 93% lower than that in 2019 due to border closures, but freight revenues kept airlines on track.

The head of Boeing Commercial Airplanes is already looking forward to engagement with customers in this region.

لقد أعجبك هذا المنشور بالفعل اليوم

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

هل لديك سؤال حول المحتوى، برجاء الاتصال على البريد الإلكتروني editorial-board@instaforex.com

News

المقالات الموصى بها

10 مليارات دولار: ثمن الأخطاء؟ J&J تعود إلى العاصفة القانونية

الربع الأول من عام 2025: الأسواق تشهد أكبر انخفاض في الأسعار منذ عام 2022

ملخص أخبار السوق الأمريكية ليوم 1 أبريل

الذهب يتألق في الأزمات: أفضل ربع منذ عام 1986 وسط الاضطرابات العالمية

ملخص أخبار السوق الأمريكي ليوم 31 مارس

الذهب: ملك الأزمات الجديد؟ أفضل ربع منذ عام 1986 وسط الاضطرابات العالمية

ترامب يحرك الخيوط — سوق الأسهم يهبط كرد فعل

ملخص أخبار السوق الأمريكية ليوم 28 مارس

ترامب يحرك الخيوط، وسوق الأسهم يتفاعل بانهيار

التعريفات الجمركية الجديدة على السيارات: كيف ستؤثر على سوق الأسهم وشركات صناعة السيارات

أهم التحليلات