Brazil’s Embraer Closes US$ 2.7 Bi, 100-Planes Deal with China

Embraer, the Brazilian aircraft manufacturer, announced Wednesday, August 30, the sale to China of 100 commercial planes, totaling a US$ 2.7 billion contract.

The operation includes 50 ERJ-145 and 50 Embraer 190s to be delivered to China’s fourth-largest air transport firm.

The delivery of the ERJ-145s, which can carry 50 passengers, is scheduled to begin September 2007. The aircraft will be assembled at a plant in the Chinese city of Harbin, Heilongjiang province, by the joint Harbin/Embraer Aircraft Industry (HEAI) association.

The Embraer 190s, which seat 106, will be manufactured at Embraer’s plant in San Jose dos Campos, Sao Paulo state, and delivery will begin December 2007.

"The deal confirms our long-term strategy to become an important supplier for the Chinese market," said Embraer president Maurí­cio Botelho. The ERJ-145s will help the HNA group to build a strong regional aviation network in China in line with its expansion plans.

As to the Embraer 190s, they will help the group expand into medium density markets, upgrading operations between cities where there is a growing demand for frequent flights, he added.

China’s Aviation Industry Corporation II (AVIC II), Zhang Hongbiao, who is also head of the joint association with Embraer, said that the two firms will combine efforts to manufacture products for the world market.

"HNA group will guarantee the continued success of the joint association which, in turn, will strengthen cooperation between the two countries in the aviation sector," he added.

The deal closed on Wednesday will also give a push to China’s domestic and regional air transport market, Zhang said. The announcement was made within the framework of a visit to Brazil by Chinese public officials and businessmen.

Since January 1, 2004, Embraer has delivered 163 so-called "E-Jets", which seat between 70 and 122 passengers and include the Embraer 190 model, to airlines in Canada, United States, Ecuador, Panama, Saudi Arabia, Finland, Poland, Italy, Germany, India and Hong Kong.

In addition, since 1997, Embraer has delivered 858 commercial jets from the ERJ-145 family, which seat between 37 and 50, to 70 airlines in 43 countries

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