Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Airbus SE defended its decision to keep importing Russian titanium, contending sanctions would hurt aerospace manufacturers who depend on the lightweight metal and wouldn’t deter Vladimir Putin after his invasion of Ukraine.
The European planemaker has been stockpiling titanium for many years, Chief Executive Officer Guillaume Faury said at the company’s annual general meeting Tuesday. That’s given Airbus some breathing room in the short and medium term, even if an embargo does take effect.
“We don’t think sanctions on imports will be appropriate,” Faury said. “This will be a small impact on Russia, and would have large consequences on the rest of the countries and the industry. So we think the no-sanction policy actually is the most meaningful one.”
Airbus, a major customer of Russia’s VSMPO-AVISMA Corp., has so far been able to keep importing the material, which hasn’t been directly targeted by a growing list of European Union sanctions aimed at punishing President Putin. U.S. rival Boeing Co. has halted Russian purchases.
Russia provides about half of Airbus’s titanium needs, directly or through key suppliers. The company has been stockpiling the metal since Russia’s 2014 annexation of Crimea, Chief Financial Officer Dominik Asam said.
The Toulouse, France-based planemaker is working to bridge the gap in long-term supply by seeking out secondary sources, Faury said.
Titanium is prized in aerospace for its strength, low mass and corrosion resistance, making it ideal for components such as landing gear. It’s also used to attach the carbon-fiber outer shell of the A350 widebody because it doesn’t flex as much as other metals with temperature changes.
(By Charlotte Ryan)
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