© Reuters. FILE PHOTO: A Honeywell logo is pictured on the company booth during the European Business Aviation Convention & Exhibition (EBACE) at Cointrin airport in Geneva, Switzerland, May 24, 2016. REUTERS/Denis Balibouse
By Abhijith Ganapavaram
BENGALURU (Reuters) – Aerospace parts maker Honeywell International Inc (NASDAQ:HON) said it was exploring adding more suppliers as it prepares to meet higher demand from planemakers Boeing (NYSE:BA) Co and Airbus SE, which are ramping up production to cater to a surge in air travel.
Honeywell, which builds everything from engines to cockpit components, said it was focused on diversifying its supplier base of parts and raw materials in situations where the company sources them from two vendors.
“It is a constant effort (to find new suppliers)”, Benjamin Driggs, president of Honeywell’s high growth regions, said in an interview with Reuters on Friday.
The company’s main raw materials for its aerospace unit include titanium, which has been under focus due to its importance in making lightweight airframes and given Russia’s position as a key supplier for the metal.
Some parts makers are actively looking for raw material sources beyond Russia, with the country’s aero industry crippled by a barrage of sanctions after Moscow invaded Ukraine.
Driggs said Honeywell was not seeing any “significant shortage” in supplies of titanium and nickel, another key metal used in making lithium-ion batteries.
Though Honeywell’s quarterly results have been hit with supply chain problems, the company is “ready to support the schedules” of Boeing and Airbus, Driggs added.
Boeing has preliminary plans to boost production of its popular 737-family narrowbody to around 47 per month by the end of next year, Reuters reported last month. In late January, Boeing was producing at a rate of 27 jets per month.
Airbus is also ramping up its narrowbody production. Both planemakers have faced complaints from suppliers, primarily engine makers, who are grappling with inflationary pressures in an industry where it is tough to pass on costs.
Honeywell seeking more suppliers as it works to support Boeing, Airbus plane targets