Brazil’s Embraer admits possibility of abandoning operations in China

6 May 2010

Sao Paulo, Brazil, 6 May – The Brazilian aeronautics company Embraer will decide by August whether to maintain its factory in China or leave the country, the company’s investor relations director, Luiz Carlos Aguiar, has stated in Sao Paulo.

Brazilian press reports indicate that during a Wednesday meeting with analysts to comment on the company’s results, Aguiar justified his statement by saying that Embraer is facing many difficulties in obtaining aircraft import licences from the Chinese government.

“We are waiting to see what happens next regarding the licences. We very much want to stay in China, but this way it’s impossible to honour contracts,” he said, adding that the company has signed contracts but cannot move forward with them without the licences.

With the import licence, the company has seven Embraer 145 models guaranteed, along with 20 Embraer 190 models.

To operate in China, Embraer created a partnership in 2003 with the Chinese companies Harbin Aircraft and Hafei Aviation Industry, both controlled by China Aviation Industry Corporation II.

Harbin Embraer Aircraft is located in Harbin, the capital of Heilongjiang province, and produces aircraft for the Chinese market. Its models are similar to those built at the company headquarters in Sao Jose dos Campos, 90 kilometres from Sao Paulo in Brazil. (macauhub)