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.

FMI: www.embraer.com