Boeing streamlines aluminium procurement strategy
Boeing streamlines aluminium procurement strategy
Keywords Aluminium,Boeing
Boeing Commercial Airplane Group (BCAG) announced a new "lean" procurement strategy in which one distributor and a select number of mills will handle all the commercial airplane manufacturer's requirements for aluminium flat-rolled products and small and intermediate extrusion for the next ten years.
"This lean strategy allows us better to forecast our aluminium requirements, which will help ensure that an adequate supply of aluminium is available to Boeing and its external suppliers at a reasonable price", said Russ Bunio, vice-president and general manager,BCAG Matedel Division.
Boeing has contracted with distributor Thyssen, Inc., NA, Detroit, Michigan a subsidiary of Thyssen AG, based in Düsseldorf, Germany and is finalizing contracts with a select number of mills that will be announced shortly. The value of the ten-year contract with Thyssen is estimated at $300 million.
Boeing will buy the aluminium directly from the mills and then provide it through Thyssen's subsidiary, TMX to its external suppliers and internal parts shops. Suppliers will be phased into the new procurement strategy as their current contracts with mill houses and distributors expire. Boeing estimates this will take 2.5 years.
