In: Press Releases
EMBRAER AND AVIC ANNOUNCE JOINT VENTURE TO BUILD EXECUTIVE JETS IN CHINA
Rio de Janeiro, Brazil, June 21, 2012 – During China´s Prime Minister Wen Jiabao’s visit to Brazil for the Rio+20 Conference, in a signing ceremony witnessed by leaders from both nations, Embraer S.A. (BOVESPA: EMBR3, NYSE: ERJ) and Aviation Industry Corporation of China (AVIC) signed 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.
About Aviation Industry Corporation of China
Aviation Industry Corporation of China (AVIC) was founded on November 6 of 2008 through the restructuring and consolidation of China Aviation Industry Corporation I (AVIC I) and China Aviation Industry Corporation II (AVIC II). AVIC is a corporation, centered on aviation, but capable of providing whole-value chain services to customers in many fields, from research and development to operation and from manufacturing to finance. Its business units cover Defense, Transport Aircraft, Engine, Helicopter, Avionics and System, General Aviation, Aviation Research, Flight Test, Trade and Logistics, Assets Management, Finance Services, Engineering Planning and Construction, Automobile and etc. It owns almost 200 member companies, over 20 listed companies and approximately 500,000 employees. It is the first Chinese defense enterprise listed as the world Top 500. By the end of June 2011, its total asset reaches RMB 500 billion.
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