Harbin Embraer Aircraft has begun assembling its first ERJ-145 as the new joint venture company prepares for a December roll-out and first flight.
Vice-chairman Guan Dongyuan says the new ERJ assembly line opened at Harbin in August with the goal of completing one aircraft in December and seven in 2004. The 22,000m2 (237,000ft2) plant will ultimately have 150 staff and capacity to assemble 24 aircraft a year.
"We're negotiating with some customers at the moment. We hope to finalise some contacts soon," Dongyuan says.
Sichuan Airlines, the only ERJ operator in China, has expressed interest in additional aircraft. Wuhan Airlines, which conditionally ordered ERJ-145s in 2001 but never secured Chinese government approval for the deal, is also discussing a possible order with Harbin Embraer. By assembling the aircraft in China using parts shipped from Brazil, a 23% tax levied on regional aircraft imports is avoided.
Harbin Embraer believes China's smaller airlines will focus more on aircraft in the 30- to 60-seat category as new airports open in secondary cities. Embraer owns 51% of the company, with AVIC I subsidiaries Harbin Aircraft Industry and Hafei Aviation Industry controlling the remaining 49%.
The joint venture's 2004 production rate hinges on the sales effort and Dongyuan says no aircraft after the first will be built speculatively. But Dongyuan has set a target of seven aircraft in 2004 based on conversations with potential customers and the learning curve involved with opening a new assembly line. All seven of these aircraft are tentatively set to be ERJ-145s, but they can be switched to ERJ-135s or ERJ-140s at the request of customers.
Source: Flight International
