VSMPO-AVISMA

VSMPO-AVISMA Corporation is a Russian mining and metallurgical company headquartered in Verkhnyaya Salda in Sverdlovsk Oblast. It is principally known for producing titanium sponge, titanium alloys, and finished and semi-finished titanium products used by aerospace manufacturers and other demanding industrial customers. The company also makes aluminum, magnesium, and steel alloys, giving it a broader specialty-metals portfolio than its strong association with titanium alone. The VSMPO name derives from the Russian name for the Verkhnyaya Salda metallurgical production association. AVISMA is derived from a Russian expression referring to aviation special materials. The combined identity reflects the company’s historical connection with aviation metallurgy and the production of high-performance materials for aircraft and related applications. VSMPO-AVISMA operates through a network of production, sales, distribution, and related industrial facilities. In addition to its principal Russian operations, reference material identifies activities or subsidiaries in Ukraine, the United Kingdom, Germany, Switzerland, and the United States. These include VSMPO-Tirus sales and distribution entities and production or processing facilities serving customers in regional markets. The company’s international footprint has been especially important because aerospace supply chains require qualified material producers, long-term technical relationships, and reliable delivery of specialized grades and forms. The corporation became closely associated with Russia’s state-linked industrial sector after Rosoboronexport acquired a 66 percent stake in October 2006. Sergey Chemezov became chairman in November 2006. Ownership later became associated primarily with Industrial Investments LLC, whose principal owner is reported as Mikhail Shelkov. A major chapter in the company’s international development was its relationship with Boeing. In December 2007, Boeing and VSMPO-AVISMA established Ural Boeing Manufacturing, a joint venture intended to produce titanium parts and support Boeing’s supply requirements. The companies agreed on titanium deliveries through 2015, and Boeing announced planned investment in the joint venture’s production capabilities. In November 2021, the companies agreed to expand Ural Boeing Manufacturing’s capacity and increase investment in research and development. That cooperation ended in 2022 after Russia’s invasion of Ukraine, when Boeing suspended titanium purchases and the earlier agreements were terminated. The company has also been connected with the Titanium Valley industrial project in Sverdlovsk Oblast, which was designed to encourage investment and development around titanium and advanced manufacturing. Before the escalation of international restrictions following the invasion of Ukraine, VSMPO-AVISMA remained an important supplier to international aerospace companies. Reference material states that, as of February 2022, it produced approximately 90 percent of Russia’s titanium and exported to about 50 countries. These figures describe the company’s reported position at that time and are not presented as current operating statistics. VSMPO-AVISMA’s business has faced legal, environmental, governance, and geopolitical challenges. A 2020 criminal case concerned transactions involving ferrotitan sold to Interlink companies at allegedly undervalued prices and subsequent purchases at allegedly inflated prices. Separate proceedings later involved allegations of inflated procurement prices and alleged losses to the corporation. In November 2021, a regional arbitration court ordered the company to pay 651 million Russian roubles in connection with land pollution. International sanctions and customer suspensions after 2022 materially changed the company’s international commercial environment. The corporation remains an active Russian specialty-metals producer, but the scope and structure of its foreign business are subject to geopolitical restrictions and ongoing litigation.

VSMPO-AVISMA is rooted in Russia’s aviation-metallurgy and specialty-materials industries. Its name combines VSMPO, an abbreviation derived from the Russian name for the Verkhnyaya Salda metallurgical production association, and AVISMA, an abbreviation associated with aviation special materials. The company’s main production base is in Verkhnyaya Salda, Sverdlovsk Oblast, a location that became closely identified with Russian titanium metallurgy. The corporation developed as a producer of titanium and other specialty metals, including aluminum, magnesium, and steel alloys. Its output includes titanium sponge, alloy materials, and products supplied to aerospace and other industrial customers. Titanium’s combination of low density, strength, corrosion resistance, and performance at elevated temperatures makes it important in aircraft structures, engines, and other technically demanding applications. VSMPO-AVISMA’s position has therefore depended not only on mining and primary metallurgy but also on processing, alloy production, quality control, and long-term qualification by industrial customers. A major ownership and governance change occurred in October 2006, when Rosoboronexport obtained a 66 percent stake. Sergey Chemezov became chairman the following month. The company later became mostly owned by Industrial Investments LLC, whose principal owner is reported as Mikhail Shelkov. This ownership history placed VSMPO-AVISMA within Russia’s strategically significant industrial and defense-linked business environment. International aerospace cooperation became a central part of the company’s modern history. On 27 December 2007, Boeing and VSMPO-AVISMA created Ural Boeing Manufacturing, a joint venture intended to manufacture titanium parts for Boeing. They also signed a titanium-supply contract extending through 2015, and Boeing planned investment in production for its own requirements. The relationship illustrated the importance of VSMPO-AVISMA to global aerospace supply chains and gave the company a direct industrial connection with a leading aircraft manufacturer. The corporation was also identified as a key organizer of the Titanium Valley project in Sverdlovsk Oblast. The project represented an effort to build an industrial cluster around titanium, advanced materials, and related manufacturing. VSMPO-AVISMA’s international structure included sales and distribution operations in the United Kingdom, Germany, Switzerland, and the United States, as well as other facilities and subsidiaries identified in reference material, including operations connected with Ukraine. Before 2022, the company maintained substantial international aerospace business despite its Russian ownership. Reference material states that in February 2022 it produced about 90 percent of Russia’s titanium and exported to 50 countries. The company was not affected by the first phase of United States and European sanctions connected with the Russo-Ukrainian War. It was temporarily placed on a United States sanctions list in December 2020 because of reported connections with the Russian Armed Forces, but was later removed. The company’s governance and commercial practices became subjects of legal scrutiny. In 2020, investigators opened a case involving former CEO Mikhail Voevodin and transactions from 2017 to 2019 with Interlink Metals and Chemicals entities. The allegations concerned the sale of ferrotitan at an undervalued price and the later purchase of processed products at an inflated cost. In a separate environmental matter, the Arbitration Court of Sverdlovsk Oblast ordered the corporation in November 2021 to pay 651 million Russian roubles for pollution affecting a large area of land. In November 2021, Boeing and VSMPO-AVISMA announced an agreement to increase Ural Boeing Manufacturing’s capacity and investment in research and development. The arrangement was short-lived. After Russia invaded Ukraine in February 2022, Boeing and Rolls-Royce suspended titanium purchases from the corporation in March, and the 2007 and 2021 Boeing arrangements were terminated. These decisions disrupted one of VSMPO-AVISMA’s most prominent international commercial relationships and reflected the broader restructuring of aerospace supply chains away from Russian sources. Litigation continued in connection with the Interlink relationship. In December 2024, the District Court of Lausanne imposed a temporary restriction on the accounts of Tirus Incorporated, a Swiss subsidiary, in a case brought by Interlink Metals and Chemicals AG. VSMPO-AVISMA maintained that Interlink had failed to repay more than four million euros for delivered goods, while Interlink alleged that the parties’ 2020 settlement agreement had been breached. Reference material also describes a later Russian criminal proceeding involving allegations that Voevodin, Evgeniy Lysenko, and Igor Raykhelson arranged supplies through counterparties at prices substantially above those of the principal supplier. In August 2025, Voevodin and Lysenko were reportedly remanded in custody pending further proceedings. The final outcomes of these matters are not established in the supplied material. VSMPO-AVISMA remains an active Russian titanium and specialty-metals producer. Its current international role is shaped by sanctions, customer decisions, geopolitical separation, and the continuing importance of titanium to aerospace manufacturing.

• 2022

  Major Western aerospace customers suspend purchases

  [1]VSMPO-AVISMAen.wikipedia.org

  Boeing and Rolls-Royce suspended titanium purchases after Russia’s invasion of Ukraine, and Boeing agreements with the corporation were terminated.

• 2021

  Boeing expansion agreement announced

  [1]VSMPO-AVISMAen.wikipedia.org

  The partners announced increased capacity and research-and-development investment at Ural Boeing Manufacturing.

• 2020

  Ferrotitan transaction case emerges

  [1]VSMPO-AVISMAen.wikipedia.org

  A criminal investigation examined allegedly underpriced sales and overpriced repurchases involving ferrotitan and former company executives.

• 2007

  Ural Boeing Manufacturing is established

  [1]VSMPO-AVISMAen.wikipedia.org

  Boeing and VSMPO-AVISMA formed a joint venture for titanium-part production and agreed on long-term supply cooperation.

• 2006

  Rosoboronexport obtains a controlling stake

  [1]VSMPO-AVISMAen.wikipedia.org

  Rosoboronexport acquired 66 percent of VSMPO-Avisma, followed by Sergey Chemezov’s appointment as chairman.

• 1983

  Order of the October Revolution awarded

  [1]VSMPO-AVISMAen.wikipedia.org

  The award recognized contributions to the development of Russian aviation metallurgy.

• 1971

  Order of the Red Banner of Labour awarded

  [1]VSMPO-AVISMAen.wikipedia.org

  The company received the award in recognition of organizing production of new equipment.

• 1945

  Order of Lenin awarded

  [1]VSMPO-AVISMAen.wikipedia.org

  Reference material lists the Order of Lenin as an award for the company’s wartime labor and production contribution.

A vertically oriented Russian specialty-metals and titanium producer serving aerospace, defense-related, industrial, and international materials markets. Its differentiation is based on titanium production scale, metallurgical expertise, and long-standing relationships with aircraft manufacturers.

• Titanium raw material

  Titanium sponge

  Titanium sponge is the primary metallic feedstock used to manufacture titanium alloys and downstream titanium products. VSMPO-AVISMA is identified as one of the world’s major producers of titanium sponge and as Russia’s dominant producer. The material supports the company’s position at the beginning of the aerospace-titanium value chain.

• Aerospace and specialty metals

  Titanium alloys and mill products

  The company produces titanium alloys and related semi-finished products for aerospace and industrial applications. These materials are supplied in forms suitable for further fabrication into aircraft structures, engine-related parts, and other components requiring high strength-to-weight performance and corrosion resistance.

• Non-ferrous alloys

  Aluminum alloys

  Aluminum alloys form part of VSMPO-AVISMA’s broader non-ferrous-metals portfolio. They complement the company’s titanium operations and serve industrial customers requiring lightweight metallic materials, although the supplied reference material does not specify individual grades or product families.

• Non-ferrous alloys

  Magnesium alloys

  VSMPO-AVISMA also produces magnesium alloys. The supplied material identifies these alloys as part of the company’s product range but does not provide detailed grade, application, or launch information.

• Ferrous and specialty metals

  Steel alloys

  Steel alloys are included among the corporation’s metallurgical products. They broaden the company’s offering beyond titanium and other non-ferrous materials, although detailed product specifications are not provided in the reference material.

• Ferroalloy and titanium feedstock

  Ferrotitan

  Ferrotitan is a titanium-bearing ferroalloy used in metallurgical production. It appears in the company’s legal history because transactions involving its sale and subsequent purchase of processed products became the subject of a criminal investigation.

• 2025

  Procurement-price criminal case

  Investigators alleged that former executives and counterparties arranged supplies at inflated prices, causing substantial damage to VSMPO-AVISMA. The supplied material states that Mikhail Voevodin and Evgeniy Lysenko were remanded in custody and that Igor Raykhelson was treated as an accused person; it does not establish final criminal liability.

  Source

• 2021

  Land pollution liability

  The Arbitration Court of Sverdlovsk Oblast ordered VSMPO-AVISMA to pay 651 million Russian roubles concerning pollution over an area of 347,538 square metres.

  Source

• 2020

  Ferrotitan pricing investigation

  A criminal case involving former CEO Mikhail Voevodin examined allegations that ferrotitan was sold to related commercial entities at an undervalued price and that processed material was later bought at an inflated price. The supplied material does not establish a final judgment.

  Source

Read more

• 2021Ural Boeing Manufacturing capacity expansion

  Russia · Global aerospace

  The partners announced additional production capacity and increased research-and-development investment at the joint venture.

  Outcome. The planned expansion was overtaken by the termination of the Boeing relationship in 2022.

  Source
• 2007Ural Boeing Manufacturing

  United States · Russia · Global aerospace

  Boeing and VSMPO-AVISMA created a joint venture to manufacture titanium parts and support Boeing’s long-term material requirements.

  Outcome. The relationship expanded in 2021 but was terminated in 2022 after Russia’s invasion of Ukraine and the resulting suspension of Boeing purchases.

  Source
• Titanium Valley

  Russia

  VSMPO-AVISMA was identified as a key organizer of the Titanium Valley project in Sverdlovsk Oblast, an industrial-development initiative associated with titanium and advanced manufacturing.

  Source

• 2022

  Respond to international aerospace disengagementStrategy

  Background

  The invasion of Ukraine led major international aerospace customers to reassess their commercial relationships with Russian suppliers.

  Action taken

  Boeing and Rolls-Royce suspended purchases of VSMPO-AVISMA titanium, and the Boeing agreements were terminated.

  Aftermath

  The company’s international aerospace business became subject to major geopolitical and supply-chain restrictions.

  • Rolls-Royce — Suspended titanium purchases from VSMPO-AVISMA.
  • Boeing — Suspended purchases and terminated its agreements with the company.

  Source

• 2021

  Expand Ural Boeing ManufacturingStrategy

  Background

  The partners sought to increase the joint venture’s production capacity and strengthen its research and development capability.

  Action taken

  VSMPO-AVISMA and Boeing agreed to expand capacity and increase investment in the research-and-development sector.

  Aftermath

  The agreement was terminated four months later after Russia’s invasion of Ukraine and the suspension of Boeing’s purchases.

  Source

• 2007

  Create Ural Boeing ManufacturingM&A

  Background

  Boeing sought secure, qualified titanium-part production and long-term access to titanium materials.

  Action taken

  Boeing and VSMPO-AVISMA established a joint venture and signed a titanium-delivery agreement extending through 2015.

  Aftermath

  The joint venture became a prominent part of the corporation’s relationship with the global aerospace industry.

  Planned Boeing investment. 27 million US dollars planned (2007)

  Source

• 2006

  Accept controlling investment by RosoboronexportM&A

  Background

  VSMPO-AVISMA became more closely integrated into Russia’s state-linked strategic industrial sector after Rosoboronexport obtained a 66 percent stake.

  Action taken

  Rosoboronexport acquired the controlling interest, and Sergey Chemezov became chairman.

  Aftermath

  The ownership change shaped the company’s subsequent governance and association with Russian strategic materials production.

  Source

1. 1VSMPO-AVISMAen.wikipedia.org