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Embraer sees Chinese role in strengthening supply chain, executive says

investing.com 13/11/2024 - 09:22 AM

By Sophie Yu and David Kirton

ZHUHAI, China (Reuters) – Brazilian planemaker Embraer stated at China's largest air show in Zhuhai that it aims to strengthen its supply chain, with participation from Chinese companies.

Embraer, the third-largest global planemaker, focuses on producing single-aisle regional and executive aircraft with capacities of up to 150 seats, positioned just below Airbus and Boeing's leading A320 and 737 families, challenging the Airbus A220.

During the event, Embraer's Chief Commercial Officer, Martyn Holmes, mentioned that Chinese President Xi Jinping is set to visit Brazil soon, coinciding with the G20 summit this month. He remarked, "I think it's an exciting moment for us to be engaging in (supply chain) discussions with Chinese suppliers and exploring our evolution."

Brazil's primary trade partner is China. Earlier this year, Brazilian President Luiz Inacio Lula da Silva expressed the desire to establish a "long-term strategic partnership" with China.

Industry insiders report that Embraer is seeking a strategic partner for a potential new passenger jet project, aiming to compete more directly with Airbus and Boeing.

Following the COVID-19 pandemic, Embraer has aimed to grow in Asia by introducing its efficient E2 jets, noting a post-pandemic trend in the region for increased demand for more frequent connections at secondary and tertiary airports. Singapore Airlines’ low-cost subsidiary Scoot became the first operator of the E2 jet in the Asia-Pacific region.

Asia, with China at the forefront, has been slower than other regions to return to pre-pandemic air traffic levels.

Embraer perceives enormous potential in China's domestic market. It has faced challenges in gaining new business in China since a joint venture for manufacturing executive jets in Harbin was dissolved in 2016. However, its E190-E2 and E195-E2 models received Chinese certification in 2022 and 2023, respectively. In June, Embraer also signed a deal with a Chinese company to convert its E-jets into freighters.




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