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AgustaWestland, Embraer Scrap Plans To Build Helicopters In Brazil

Agreement Made In January Jointly Abandoned In April

Brazilian planemaker Embraer and Italian helicopter manufacturer AgustaWestland have scuttled talks for the production of helicopters in the South American nation.

The two sides issued a joint statement saying that they had mutually determined to terminate negotiations on the project which was first agreed to in January. No immediate explanation of why the project fell through was given by either party.

According to a report from United Press International, the two sides were exploring a project that could exploit the growing helicopter market in Latin America. More rotorcraft are being used for business travel, industrial research, and other missions. A military helicopter was also part of the plan, according to the report. Increases in offshore oil production also figured into the business model.

Analysts said that Brazil will likely continue to explore ways to domestically manufacture a helicopter as part of an overall aviation and aerospace expansion policy.

AgustaWestland has been the subject of scandal and a change in leadership since the agreement was first announced. It still has hopes of expanding its market share in Latin America, where Eurocopter has delivered more than 500 helicopters since 1978.

FMI: www.embraer.com, www.agustawestland.com

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