Honeywell seeks more suppliers as it works to support Boeing and Airbus aircraft targets

A Honeywell logo is pictured on the company’s stand during the European Business Aviation Convention and Exhibition (EBACE) at Cointrin airport in Geneva, Switzerland, May 24, 2016. REUTERS/Denis Balibouse

Join now for FREE unlimited access to Reuters.com

Register

BENGALURU, April 11 (Reuters) – Aerospace parts maker Honeywell International Inc (HON.O) said it was considering adding more suppliers as it prepares to meet increased demand from aircraft makers Boeing Co. (BA.N) and Airbus SE (AIR.PA), which are ramping up production to cope with increased air traffic.

Honeywell, which builds everything from engines to cockpit components, said it is focused on diversifying its supplier base of parts and raw materials in situations where the company buys them from two suppliers.

“It’s a constant effort (to find new suppliers),” Benjamin Driggs, president of high-growth regions at Honeywell, said in an interview with Reuters on Friday.

Join now for FREE unlimited access to Reuters.com

Register

The company’s main raw materials for its aerospace unit are titanium, which has received particular attention due to its importance in the manufacture of lightweight airframes and given Russia’s position as a supplier. metal key.

Some parts manufacturers are actively seeking sources of raw materials beyond Russia, as the country’s aircraft industry is crippled by a deluge of sanctions following Moscow’s invasion of Ukraine. Read more

Driggs said Honeywell sees no “significant shortage” in supplies of titanium and nickel, another key metal used to make lithium-ion batteries.

Although Honeywell’s quarterly results were hit by supply chain issues, the company is “ready to support schedules” from Boeing and Airbus, Driggs added.

Boeing has preliminary plans to ramp up production of its popular 737 family narrowbody to about 47 a month by the end of next year, Reuters reported last month. At the end of January, Boeing was producing at the rate of 27 jets per month. Read more

Airbus is also ramping up its narrow body production. Both planners have faced complaints from suppliers, mainly engine manufacturers, who are struggling with inflationary pressures in an industry where it is difficult to pass on costs.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Krishna Chandra Eluri

Our standards: The Thomson Reuters Trust Principles.