FI2008: ThyssenKrupp unit secures key Boeing contract

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Boeing has awarded ThyssenKrupp Services’ US subsidiary TMX Aerospace a 10-year follow-on contract to provide it with a range of supply-chain management services, writes Niall O’Keeffe.

The deal, which renews a similar one signed in 1998, covers global purchase pooling, deadline tracking, inventory management, processing of aluminium and titanium products, optimisation of in-plant materials flow, and coordination of 700 Boeing production plants and subcontractors.

The announcement of the deal, at the Farnborough Air Show, coincided with a reorganisation of ThyssenKrupp Services’ aerospace businesses – which also include Apollo Metals, acquired earlier this year, and Alcoa’s US service centres, acquired in late 2006 – into a new group, ThyssenKrupp Aerospace.

As a provider of aluminium, stainless steel and non-ferrous metals, the Apollo Metals element of the business counts Airbus, Boeing and Bombardier Aerospace among its customers.

“The way the primes are redesigning their supply chains, with fewer suppliers, we see it being important that you have relative scale,” says Stuart Wilkins, former chief executive of Apollo and new chief executive of ThyssenKrupp Aerospace. “But being large or having global coverage is not the be all and end all: you have to provide local services.”

Combining Apollo’s mainly European and Far Eastern business with ThyssenKrupp Services’ legacy US concerns, ThyssenKrupp Aerospace has 30 locations in 13 countries, 1,000 employees and a turnover in excess of $700 million.