Will Invest $50 Million To Establish Facility At MLB

ANN REALTIME UPDATE 05.13.08 1700 EDT: It's official! Embraer announced Tuesday it plans to invest an estimated US$ 50 million for the establishment of a new facility in the United States dedicated to its executive jets business. The new 150,000-square-foot state-of-the-art facility will house a final assembly line, the first for Embraer in the U.S. It will be capable of producing both the Phenom 100 and Phenom 300 executive jet models, as well as a paint shop and a delivery and customer design center.

The announcement followed a high-level meeting involving Melbourne mayor Harry Goode, Florida Governor Charlie Crist, Enterprise Florida, and other state and local officials.

After a rigorous and thorough site selection process, the preferred location for the project is Melbourne International Airport, in Melbourne, Florida, which best satisfies all applicable operational requirements and strategies. A Memorandum of Intent has been executed between all of the necessary parties, and a final decision is predicated on approval by the State and local governments.

Embraer expects to create approximately 200 skilled positions by 2011. These will be necessary to operate all aspects of the facility, including aircraft assembly, production planning, logistics and quality, aircraft interior design, corporate administration, engineering, and aircraft painting, delivery, and flight testing functions.

"Developing this new facility will allow Embraer to respond to the growing demands of its executive jets business and reaffirms our commitment to meet and exceed customer requirements and expectations," said Frederico Fleury Curado, Embraer President & CEO. "We are very excited and confident that our new location, in Melbourne, Florida, will be a successful step and a special milestone for the Company. We look forward to working with local officials to finalize the proposal and begin the development of this new facility."

"We welcome Embraer as a key player in Florida’s expanding aviation sector," Governor Crist said. "With this announcement, the Sunshine State again demonstrates its ability to attract world-class companies able to compete in the competitive global economy."

Original Report

1200 EDT: A meeting scheduled for Tuesday in Melbourne, FL may lead to Brazilian planemaker Embraer locating a showroom and production facility for its upcoming Phenom 100 and 300 light jets in the Sunshine State.

Florida Today reports Governor Charlie Crist will discuss details of the $41 million deal with executives from Embraer. The meeting comes following weeks of closed-door discussions between the two sides.

The first phase of the plan would include building a assembly facility on a 15-acre site at Melbourne International Airport, according to sources. As many as 200 jobs would be created by the new plant, which could be operational by January 2010.

Embraer wants $1.8 million in economic incentives to secure the deal... and local officials are reportedly eager to talk, as the new jobs would carry an average annual wage of $50,000 -- close to $11,000 higher than current average wages in Brevard County.

Last month, Embraer's Phenom 100 very-light-jet made its first appearance in the United States, undergoing cold-soak testing in the climate lab at Eglin Air Force Base (above).

FMI: www.embraer.com