PAUL LEWIS / RIO DE JANEIRO
Manufacturer expects acquisitions in the longer term to boost global presence
Embraer has set its sights on broadening out from commercial aerospace to play a bigger role in the defence sector - both at home and overseas - and the business aircraft market. In the longer term, the Brazilian company wants to establish a stronger global presence through acquisitions.
Production of ERJ-145 series regional jets and the new, larger 170/190 family, deliveries of which are due to start later this year, account for 85% of Embraer's turnover. "We have set ourselves the strategic objective of having 25% of our revenue split between defence and corporate aviation and 5% services by 2007," says Embraer president Mauricio Botelho.
Defence is the largest non-commercial aircraft market, now accounting for 8% of Embraer's sales, and this is set to grow with the start of EMB-314 ALX production at the company's new purpose-built Gaviao Peixoto facility. The Brazilian air force has ordered 76 of the armed Super Tucano derivative and has options on 23 more, with deliveries starting in December. Embraer sees a market for 300-400 aircraft and says it is still in talks with Colombia, although the country has postponed its purchase.
Embraer is seeking to overturn the air force's selection of the EADS Casa upgraded Lockheed Martin P-3A Orion for the P-X requirement, with the lower-cost offer of the P99 maritime patrol version of the ERJ-145 equipped with a Thales mission system (Flight International, 29 April-5 May).
A decision on the F-X future fighter programme has been postponed to next year at the earliest, but in the meantime Embraer continues to push the Dassault Mirage 2000BR, claiming that in terms of technology access, it represents the best solution. "This is big value to us in terms of technology transfer such as aerostructures and dynamics and source codes access," says Botelho. "We'll get possession of relevant and sensible technology not available anywhere else. Economically speaking, the P-X programme is the most important opportunity for us, although strategically, F-X is the more important."
Embraer's other major identified growth opportunity is in business aircraft, despite the current slowdown in corporate expenditure.
Botelho foresees the company on a process of global expansion over the next 15-20 years. "I think we will be exercising a lot of acquisitions in areas compatible with our core competences, such as aeronautics, system engineering and activities focused on defence," he adds. "I see us strongly established in the world, eventually with manufacturing facilities abroad."
Source: Flight International
