WSJ: Ukraine tensions could create problems for Boeing

Boeing's (BA) business illustrates how radically corporate ties between the U.S. and Russia have changed since the Cold War: BA has spent ~$7B in Russia since 1991 and plans to increase that amount to $27B by 2021; it operates a major manufacturing joint venture in Russia with VSMPO-Avisma, the world's largest titanium producer, and has another one planned; and it has a design center in Moscow that works on some of its most important planes, including the 787 Dreamliner and the planned 777X.

Aeroflot and other Russian airlines and leasing companies hold orders for ~100 Boeing planes including the 787, valued at billions of dollars.

Boeing also has extensive dealings with VSMPO-Avisma, which supplies about a third of the titanium used in Boeing's jets; the lightweight metal is especially important for the 787, making up about 15% of its weight.

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Comments (4)
  • phawk33
    , contributor
    Comments (55) | Send Message
    Now this really illustrates how misguided and plain stupid Boeing top management is and has been. For Boeing to open a design center in Russia it amounts to sharing technology with an unreliable, unstable nation that was our top adversary a scant 2 decades ago. What is worse, the Russian design center can withhold designs and technology from the mother company, and then what?


    Incredible and plain stupid!
    3 Mar 2014, 06:14 PM Reply Like
  • gmmpa
    , contributor
    Comments (679) | Send Message
    I agree. This is the price of Globalization. Only problem is all the governments in these countries are repressive dictatorships or unstable and corrupt democracies with a little "d". General Motor is in China, Ford is in Mexico and Brazil. America gives away our intellectual property and expertise in exchange for cheap labor and short term profits. This is a recipe for future disaster when dictators exercise their reign of power like in the Ukraine. This is the sad world we live in.
    3 Mar 2014, 08:40 PM Reply Like
  • phawk33
    , contributor
    Comments (55) | Send Message
    Maybe we in America should rethink Globalization as it is now. The smarter governments take advantage of America's naivete and use us to advance their own. Think Apple and China and the case here with Boeing and Russia.
    Perhaps this Globalization experiment will change into a more isolated world and the strong will survive. Kind of like it was in the post-WW II years. America has been blessed with many attributes and natural resources to make it completely independent of other countries. But we would need leaders with intellect and the b***s to move us the right direction.
    4 Mar 2014, 10:46 AM Reply Like
  • thomas85225
    , contributor
    Comments (552) | Send Message
    Boeing is Multinational Corporation that operator in 70 counties and build 70% of commercial aircraft in 70 countries and 25 states
    Japan has 21% of the 777 and 36% of 787


    Boeing has sold its fabrication plants


    Boeing now need 27 Billions of tax payer money to build 259 777-X that will not be delivery still 2020


    Boeing has stated that design of further aircraft will not be done in Washington state
    Boeing has seven design center around the world


    Boeing should only sell the 787 to Russia
    3 Mar 2014, 08:48 PM Reply Like
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