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Business

Airbus wants more Ohio suppliers

By LARRY RINGLER Tribune Chronicle
POSTED: October 29, 2009

RTI International Metals Inc., General Electric Co. and 600-plus other Ohio companies already benefit from the aerospace business, but one of the industry's largest players wants even more.

U.S. Sen. Sherrod Brown, D-Ohio, and Airbus Americas Chairman Allan McArtor Wednesday announced a partnership between Airbus and Ohio suppliers aimed at expanding the state's aerospace industry.

They plan to co-host two procurement conferences in Ohio to attract more companies. The first conference is scheduled for 10 a.m. Dec. 7 at the Ohio Aerospace Institute, 22800 Cedar Point Road in the Cleveland suburb of Brook Park. Registration will start at 9 a.m.

The second expo will be in southern Ohio next year. A date and location have not been set.

McArtor noted Ohio is first out of the 40 states where Airbus buys goods and services, which in 2008 amounted to $3.96 billion in direct business with Ohio suppliers. More than 186,000 jobs in the state are directly linked to aerospace.

Even more jobs and dollars are generated when subsuppliers and other indirect business is included, it added.

A key supplier is RTI, which produces titanium at its RTI Niles mill that is used to make critical parts such as main landing gear and struts, McArtor said. Two years ago, Airbus inked a $1.1 billion contract with RTI to supply the European company with 45 million pounds of titanium over 10 or 11 years, he said.

RTI has some advantages over other suppliers because its titanium products are highly traceable, McArtor said.

''One of the things we have to do in our industry as a regulatory requirement is show the pedigree of the products, and RTI does that very well,'' he said.

Although hard hit by the economic downturn, aerospace insiders believe they've seen the bottom of the recession, McArtor said. He noted sales are off but the number of airplane deliveries the company is making is still high at 480.

''We've deferred about all the planes our customers want deferred,'' he said, adding it's important for banks to start offering credit to help airlines put more modern, fuel-efficient technology in the air.

 
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