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Sat, Jun 23, 2012

Embraer, AVIC Announce JV To Build Executive Jets In China

HEAI Expects First Aircraft Deliveries In 2013

In a signing ceremony witnessed by leaders from Brazil and China held during China´s Prime Minister Wen Jiabao’s visit to Brazil for the Rio+20 Conference, Embraer and AVIC inked an agreement to build Embraer’s Legacy 600/650 executive jets in China, using the infrastructure, financial resources and workforce of their joint venture Harbin Embraer Aircraft Industry Co., Ltd. (HEAI), which started operations in 2002.

The agreement is based on the understanding of both parties about the potential demand of China’s flourishing executive aviation market, and their wish to extend their decade-long strategic partnership.  HEAI’s first executive jet is expected to be delivered by the end of 2013. “Today´s announcement marks another milestone in the history of Embraer's long term commitment to China and of Brazil-Sino bilateral relations. This new phase of AVIC-Embraer partnership corroborates what has been referred to by state leaders of both countries as ‘a model of South-South cooperation’,” said Frederico Fleury Curado, Embraer President and CEO.
 
“The achievement of Sino-Brazil cooperation in the field of aviation is a hard-won, indispensable of the joint efforts from state leaders and the industry players of both countries. The cooperation on executive jets manufacturing, as the continuation of what the two parties have attained via the joint venture, fits in the strategic development of all parties. It is undoubtedly a win-win strategic international cooperation. As the leader of China’s aviation industry, AVIC will seize the opportunity to develop a platform building executive jets that will meet the demand of the global and China markets, and ultimately assist China’s executive aviation industry progressing into a new stage,” said Tan Ruisong, President of Aviation Industry Corporation of China.
 
Embraer's presence in China dates back to 2000, when its Beijing Representative Office was established. In June 2010, in light of its increasing customer base, the Company set up its first wholly owned subsidiary in China, the Embraer (China) Aircraft Technical Services Co., Ltd., focusing on after sale support.
 
To date, Embraer has 154 firm orders from China market, with 116 aircraft already delivered.  Embraer accounts for around 78% of China’s regional aviation market and is gaining strength in its executive segment with 18 firm orders for executive jets in the year 2011. The cooperation with AVIC on Legacy 600/650 program further consolidates Embraer’s presence in China’s executive aviation market.

FMI: www.embraer.com

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