Embraer sells industrial units in Portugal under a long-term agreement – Cavok Brasil

Embraer and Aernnova, an international reference in the supply of aerostructures, today announced a strategic partnership for the industrial units Embraer Metálicas and Embraer Compósitos, located in the Aeronautical Industrial Park of Évora, in Portugal.

The agreement contemplates the sale of all shares of said subsidiaries of Embraer to Aernnova, for the amount of US$ 172 million, subject to adjustments until the closing date. The agreement aims to increase the production capacity of the centers of excellence, whose operation is of strategic importance for Embraer’s current and future products.

With 37,100 and 31,800 square meters, respectively, and employing around 500 people, the facilities combine the most advanced technologies in the manufacture of metallic and composite aerostructures with a high level of digitalization and automation of production processes. The two plants produce, among others, components for wings and vertical and horizontal stabilizers for Embraer’s aeronautical programs, such as the Praetor 500 and Praetor 600 executive jets, the two generations of the E-Jets family of commercial jets and the KC- 390 Millennium. The industrial units in Évora will be Aernnova’s largest production centers in the world.

With the new terms of the partnership, Aernnova assumes the operation of the industrial plants in Évora and, at the same time, ensures the supply for current production of Embraer aircraft, increasing Aernnova’s long-term revenue forecast.

The agreement aims to increase production and diversify the customer base.

The agreement reinforces Aernnova’s position as a premier supplier for single-aisle aircraft, advancing the company’s position in the defense and business aircraft markets. Activities at the Évora industrial facilities will add approximately US$170 million in revenue for Aernnova. The capacity of the industrial units in Évora will also allow the signing of new contracts, either with Embraer or with other manufacturers.

“We are pleased to announce this partnership with Aernnova, a world-renowned supplier of aerostructures. The agreement will allow the expansion of occupancy levels at the plants in Évora and the diversification of the customer base, bringing new business opportunities”, says Francisco Gomes Neto, President and CEO of Embraer. “This agreement is an important step in our asset optimization strategy, which aims to maximize the use of our units and improve the company’s profitability.”

Ricardo Chocarro, CEO of Aernnova, says that “the agreement is another step in Aernnova’s growth strategy, which further reinforces the company’s status as a global leader in the design and production of aerostructures. We plan to further advance the operations of the facilities and establish Évora as a model in the manufacture of aerostructures, with the technical and commercial support of the Aernnova Group – which has a lasting commitment to the development of a more sustainable and digital aeronautical industry”.

With this strategic move, Embraer reinforces and consolidates its commitment to Portugal, the country where the company invests the most in industrial capacity, outside Brazil, and which has a strategic location for its presence in Europe.

Completion of the transaction is subject to a set of conditions that the parties involved expect to meet in the first quarter of 2022.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

Check Also

Oil prices fall from 7-year high on tensions in Russia

Oil pumping in Loving County, Texas (USA) By Stephanie Kelly NEW YORK (Reuters) – Oil …