Embraer and Avic will jointly build executive jets in China


RIO DE JANEIRO, Brazil, 2 July 2012. Officials at Embraer S.A. (NYSE:ERJ) and Aviation Industry Corp. of China (AVIC) have signed an agreement to build Embraer’s Legacy 600/650 executive jets in China. They will use the infrastructure, resources, and workforce of joint venture Harbin Embraer Aircraft Industry (HEAI), which has been operational for a decade. The venture is intended to meet the demand of China’s growing executive aviation market. 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’,” says Frederico Fleury Curado, Embraer president and CEO.  

“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 a win-win strategic international cooperation. 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,” says Tan Ruisong, President of Aviation Industry Corp. 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

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