Embraer entered into a framework agreement with China AVIC on industrial cooperation
The program will focus on final assembly of Legacy 600/650 in China . São José dos Campos, April 12, 2011 – Embraer S.A. (BOVESPA: EMBR3, NYSE: ERJ), signed today a framework agreement with AVIC (Aviation Industry Corporation of China) aiming to implement a Legacy 600/650 production line in China, using the infrastructure, financial resources and workforce of their joint venture company Harbin Embraer Aircraft Industry Company (HEAI). In the next few weeks the parties shall finalize the details of the project and execute the relevant documentation.
Embraer and AVIC recognize the rapid growth of the Chinese executive aviation market and are encouraged with the potential of the Legacy 600/650 to fulfill the requirements of this demanding market.
Embraer’s corporate presence in the PRC dates back from the year 2000, and there are more than 80 Embraer aircraft currently operated in Greater China.
HEAI was established in January 2003, and has produced and delivered 39 ERJ 145 aircraft to date.
About Aviation Industry Corporation of China
Aviation Industry Corporation of China (AVIC), restructured and incorporated on the basis of former China Aviation Industry Corporation I (AVIC I) and China Aviation Industry Corporation II (AVIC II), is a state-owned enterprise, a state government authorized investment organization, and a state holding company, directly reporting to the Central Government. AVIC establishes 10 functional entities including Defense Business Unit, Transporter Company, Engine Company, Avicopter Company, System Company, General Aircraft Company, Assets Management Business Unit, CATIC, Technology Basic Research Institute, and Technology and Economy Research Institute. Among AVIC’s nearly 200 subsidiaries (branches), 18 subsidiaries are listed on China mainland stock exchange and 3 subsidiaries are listed on Hong Kong.
The Sale Revenue of AVIC is US$ 31.44 billion, EBIT reached US$ 1.53 billion and become the Top of 500.
AVIC is not only develop the Aero products but also develop the None-Aero products such as automobile, motorcycle gas turbine, refrigeration equipment, electronic products, environmental protection and new energy equipment etc.
Source: Embraer
