Based in the Perm Territory in the Urals, Vsmpo-Avisma controls a third of the world's titanium market. Its main partners are U.S. and European aircraft giants Boeing and Airbus, which account for 30% of its earnings.
"I think a foreign representative should join the board of directors before the company's IPO in 2007," said Sergei Chemezov, the head of Rosoboronexport, which holds a 66% stake in the titanium producer.
Chemezov said the company's value, currently about $2.2 billion, will be re-estimated before the IPO. He said Rosoboronexport is also planning the company's expansion by acquiring assets in Ukraine and Kazakhstan, and that talks were underway.
Vsmpo-Avisma, with an expected average 10-12% sales rise annually, was established in July 2005, when Avisma (Special Aviation Materials, a Soviet-era enterprise) merged with Vsmpo (Verkhnaya Salda Metallurgical Production Association).
