Titanium Metals Corporation announced March 19 that it has entered into a new, long-term titanium supply agreement with Rolls Royce plc and certain of its affiliates. The agreement provides for TIMET's supply of titanium products to Rolls-Royce for gas turbine engine production through 2016. Total revenues over the term of the contract are estimated to be in excess of $2 billion. TIMET will continue to be the primary supplier of Rolls-Royce's titanium requirements for its gas turbine engines.
Steven L. Watson, CEO and vice chairman of the board of directors of TIMET, said, "This new agreement extends our longstanding strategic relationship with Rolls-Royce to each company's world-wide affiliates, reflecting the global nature of our companies' operations. We believe this new agreement also further solidifies TIMET's industry-leading position on hollow fan blade titanium components for aircraft engines and provides opportunities to grow with Rolls-Royce in the development of engine programs for the latest generation of twin-aisle aircraft such as the Trent 900 for the Airbus A380 and the Trent 1000 for Boeing's 787 Dreamliner and offers potential growth in future programs such as the Airbus 350XWB."
