Where There's a Law, There's a Way

Embraer, the world's fourth-largest aircraft manufacturer, intends to open an aircraft production facility in Jacksonville (FL), for the U.S. defense and homeland security markets. This production facility, to be located at Cecil Commerce Center, will fully-qualify the company as a compliant U.S. government supplier for defense and homeland security programs.

"We believe this initiative, aimed at the U.S. defense and homeland security markets, will lead to a multi-year expansion of Embraer capabilities in the United States on defense-related operations," said Mauricio Botelho, Embraer President and Chief Executive Officer. "Embraer first established its U.S. presence in 1979 with a sales and product support facility in Fort Lauderdale. In the past years, besides the significant expansion of that facility, we added an engineering office in Palm Beach Gardens, and a maintenance, repair and overhaul facility in Nashville (TN).

"Embraer has been actively pursuing U.S. defense and homeland security market opportunities that have requirements for advanced, reliable and affordable Intelligence, Surveillance and Reconnaissance (ISR) systems such as those on our current products ordered by Brazil, Mexico and Greece," Botelho said.

"We are very pleased that Embraer has selected Jacksonville as a strategic location from which to successfully compete in the U.S. defense market," said Florida Governor Jeb Bush. "Florida is host to many of the world's top aerospace and defense companies, and of our ability to play a vital role in maintaining the security of our nation is a source of great pride for us."

Embraer selected Jacksonville from a short list of attractive cities because it best satisfied the company's checklist of requirements primarily focused on facilities and logistics, but also included factors such as skilled labor and cost of living.

"We are very excited about Embraer's announcement," said Jerry Mallot, Executive Vice President of the Jacksonville Regional Chamber of Commerce. "The selection of Jacksonville for its production facility is testament to the quality of Cecil Commerce Center as a major aviation location."

The "Cecil Commerce Center" is the former Cecil Field Naval Air Station, an active military base until its closure in 1999. The 17,200-acre site, which includes four aircraft runways, is now being redeveloped for civilian use. The company will release details on the scope and timing of the project at a later date.

The U.S. market is the largest for Embraer, accounting for some 67 percent of its sales for commercial and business aircraft. Of 1,519 aircraft delivered worldwide, more than 780 aircraft have been delivered in the U.S. since the company was founded in 1969. These deliveries not only make Embraer one of Brazil's leading exporters, but a leading importer of components as well, with the major portion of this trade coming from U.S. suppliers. The Company (as of March 31, 2003) has a total workforce of 12,407 people. Embraer was Brazil's largest exporter from 1999 to 2001, and second largest in 2002.

FMI: http://embraer.com.br