Sat, Oct 09, 2010
Brazilian Company Reportedly May Close Harbin Embraer Aircraft
Industry
Facing possible competition from a Chinese Regional Jet,
Embraer is reportedly considering shuttering its Harbin Embraer
Aircraft Industry Co. factory in China, according to Brazil's
Estado news agency.
In 2002, China had agreed to buy regional jets from Embraer as
an incentive to place a manufacturing facility there. But as China
moves forward with the ARJ21 regional jet, which would compete
directly in the 78-90 seat market beginning in 2011, as well as the
C919 single-aisle medium-haul airliner, Embraer may be re-thinking
that position.
Chinese AJR21 File Image
The company so far says that it has not made a decision on the
Chinese factory. In a statement posted on its website Thursday,
Embraer says "With reference to the news that was released by the
press, today, about the possible cessation of the industrial
operations of Harbin Embraer Aircraft Industry (HEAI), Embraer
clarifies that, at the present time, no decision has been made in
this respect, and that the Company is negotiating with the
government of China and the Chinese partner for the purpose of
continuing the operations." The Harbin factory was established
specifically to give Embraer a toehold in an Asian aircraft market
that is expected to see significant growth.
The Associated Press cites a statement by Embraer's VP for
Commercial Aviation Paulo Cesar de Souza e Silva to Estado that
China now considers Embraer a competitor as the projected ARJ21
service date is approaching.
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