VSMPO-AVISMA Corporation and SAFRAN entered into new Long-Term Supply Agreement

PSC “VSMPO-AVISMA Corporation” announced that it has entered into a new, long-term titanium supply agreement with SAFRAN and its Snecma, Turbomeca, Messier-Dowty, Microturbo and Techspace Aero operating units. The agreement, effective as of January 1, 2008 provides for VSMPO-AVISMA Corporation to supply titanium plates, bars and billets to Snecma and other SAFRAN Group companies for manufacturing aircraft engines and equipment.

Total revenues over the term of the agreement are estimated to be in excess of $300 mln. According to the agreement, PSC “VSMPO-AVISMA Corporation” will continue to be a major supplier of titanium to SAFRAN.

PSC VSMPO-AVISMA Corporation, headquartered in Verkhyna Salda, Sverdlosk Region of Russia, is the world’s largest producer of titanium products, mostly used for aerospace applications. Production facilities comprising the Corporation are united by a single process flow and employ approximately 20,000 people. AVISMA’s sponge titanium is used at VSMPO in production of higher value-added products, such as sheet, section, forging, die forging, etc. Up to 80% of such titanium products are exported.

SAFRAN is an international high-technology group with four core businesses: Aerospace Propulsion, Aircraft Equipment, Defense Security, and Communications. It has 57,000 employees in over 30 countries, and annual revenues of EUR 12 bln. The SAFRAN Group comprises a number of companies with prestigious brand names, and holds, alone or in partnership, global or European leadership positions in all of its markets.