Embraer
Boeing, Embraer
agree to KC-390 joint venture
By: Valerie Insinna
WASHINGTON
— Brazilian
aerospace firm Embraer and Boeing have
officially formed a
joint venture on Embraer’s KC-390 multimission aircraft as part of a larger partnership on
the companies’ commercial sides.
Under the new agreement, Boeing and
Embraer will
work together to
“promote and develop new markets” for the KC-390, according to a statement
released early Monday.
Embraer will own a 51 percent stake in
the KC-390 joint venture, with Boeing owning the rest.
The
announcement on the KC-390 comes as the companies approved the terms of a strategic
partnership that gives Boeing an 80 percent stake in Embraer’s commercial and
services business for $4.2 billion.
Before the parties move forward with the
transaction, the government of Brazil — which holds a “golden share” in Embraer
— must consent to the agreement, and the deal is also subject to the approval
of shareholders and regulatory agencies.
“Boeing and Embraer know each other well
through more than two decades of collaboration, and the respect we have for
each other and the value we see in this partnership has only increased since we
announced our joint efforts earlier this year,” said Dennis Muilenburg, Boeing
chairman, president and CEO.
“We are confident that this partnership
will deliver great value to Brazil and the Brazilian aerospace industry as a
whole. This alliance will strengthen both companies in the global market and is
aligned with our long-term sustainable growth strategy,” said Paulo Cesar de
Souza e Silva, Embraer president and CEO.
Boeing and Embraer have partnered on the
KC-390 before. The companies agreed to pacts in 2012 and 2014 that gave the
U.S. firm a role on global marketing and logistics support of the KC-390.
However, in the wake of the commercial
Boeing-Embraer deal, officials said a new KC-390 joint venture could be broader
in scope than those partnerships.
How this new joint venture differs from
past agreements is unclear, and the news release contained only sparse details.
According
to a July 5 memorandum of understanding between the two companies, a KC-390 joint
venture would “grow KC-390 sales and aftermarket opportunities through joint
efforts in sales, marketing, engineering and industrial collaboration,” hinting
that the partnership could involve an enhancement of the KC-390’s capabilities
or Boeing’s help on technology and industrial development.
In October, a Brazilian newspaper
reported that Boeing and Embraer were discussing the prospect of building a
KC-390 plant in the United States.
Source: www.defensenews.com
BOEING, EMBRAER AGREE TERMS FOR JOINT VENTURE
MIAMI — Boeing and Embraer have agreed to the
terms for the strategic partnership both manufacturers are seeking to remain
competitive against the Airbus and Bombardier marriage that occurred earlier
this year.
The
new agreement between the American and Brazilian manufacturers will come as a
Joint Venture where Boeing will hold an 80% stake in Embraer’s Commercial
Aircraft Services Operations, while Embraer remains with a 20% stake.
All
that is left for the deal to go through is the Brazilian government’s approval,
after which Boeing and Embraer will put together the definite traction
documents. The partnership will then be subject to shareholder and regulatory
approval from both USA and Brazilian authorities.
Boeing
will acquire an 80% stake of Embraer for $4.2 Billion.
Once the deal is complete, the Joint
Venture will have its main offices in Brazil, with a President and Chief
Executive Officer reporting directly to Boeing’s CEO, Dennis Muilenburg.
Boeing,
however, will have direct control over the operations and management sides of
the Joint Venture.
Both
Boeing and Embraer expect to complete all transactions related to the agreement
by the end of 2019.
On
top of this, the two companies have agreed on a separate Joint Venture to
promote and develop the Embraer KC-390, a multi-mission medium airlifter.
The deal will see Boeing acquiring a
49% stake in the program, with Embraer holding the remaining 51% stake.
“Boeing
and Embraer know each other well through more than two decades of
collaboration, and the respect we have for each other and the value we see in
this partnership has only increased since we announced our joint efforts
earlier this year,” said Muilenburg.
Paulo
Cesar de Souza e Silva, Embraer CEO, added that his side is, “confident that
this partnership will deliver great value to Brazil and the Brazilian aerospace
industry as a whole. This alliance will strengthen both companies in the global
market and is aligned with our long-term sustainable growth strategy.”
Muilenburg
later tweeted that this partnership “is a major step toward bringing
together two world-class teams and highly complementary product and service
portfolios. We expect our proposed partnership will generate significant value
for our customers, team members and shareholders.” Source: airwaysmag.com
Embraer KC-390 receives a type certification Brazilian aviation authority
First Series Production KC-390 Successfully Performs First Flight
Boeing, Embraer partnership on KC-390 could involve engineering collaboration
KC-390 at Farnborough 2018 - Video
Embraer KC-390 receives a type certification Brazilian aviation authority
First Series Production KC-390 Successfully Performs First Flight
Boeing, Embraer partnership on KC-390 could involve engineering collaboration
KC-390 at Farnborough 2018 - Video
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