Brazil’s Embraer to invest US$40 million in Singapore office

4 May 2007

Sao Paulo, Brazil, 4 May – Brazil’s Embraer, the fourth largest aircraft manufacturer in the world, plans to invest US$40 million this year in expanding its office in Singapore, to make advances in the Asia-pacific region, the company told Macauhub.

According to the company, the investment will include construction of a logistics and parts center and a complete flight simulator, both in Singapore.

In Asia, as well as its Singapore office the company also has two facilities in China: in Beijing it has an office and in the city of Harbin it set up a joint venture with Aviation Industries of China II (AVIC II), where it produces jets with a capacity of up to 70 people.

This year, the Brazilian company delivered 18 aircraft to its four main Chinese customers – HNA Group, China Southern, China Eastern Jiangsu, China Eastern Wuhan – and expects to deliver a further three by December.

The HNA Group also ordered another 100 jets in August of last year, making it the Brazilian company’s largest Asian customer.

The first units of that order, valued at US$2.7 billion, are expected to be delivered in September of this year, according to the company, which added that 50 aircraft would be produced at its headquarters, in Sao Jose dos Campos, in the State of Sao Paulo, and the other half of the order in the Harbin factory.

A study carried out by Embraer forecasts that China will have total demand for 630 aircraft over the next 20 years and that that number corresponds to around 60 percent of demand for the entire Asia-Pacific region in the same period.

Over the next two decades the Brazilian company expects to sell at least 1,000 aircraft. (macauhub)