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Constellium: Clearing the fog in supply chains for plane suppliers

Constellium, a maker of aluminium products, said that Airbus's efforts to resolve supply chain issues which affected demand last year have helped improve visibility for aviation suppliers.

Airbus has been unable to increase production due to bottlenecks, particularly in the engine supply chain. However, the jet manufacturer still maintains a delivery date of 2025.

Constellium, the largest supplier of aluminum for planes in the world, has seen its aerospace business suffer a drop in volume since last year.

At the Paris Airshow, Philippe Hoffmann said, "Things have become more reassuring. We are less in the fog at an industrial level."

Hoffman added that Boeing will also accelerate its deliveries after it integrates Spirit AeroSystems.

He added that increased deliveries from the two global aircraft manufacturers, as well as a reduction in current inventories, would likely boost demand throughout the supply chain over the next two to three years.

Hoffmann said that the longer-term outlook for aluminum in aerospace is healthy. Airbus has orders for models such as its A320 single aisle jet which are aluminium-intensive. Reporting by Gus Trompiz. Mark Potter edited the article.

(source: Reuters)