🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

Embraer sees India, Saudi Arabia, EU, US as strategic defense markets

Published 06/18/2024, 06:05 PM
Updated 06/18/2024, 06:12 PM
© Reuters. FILE PHOTO: Signage for Embraer is seen on a trade pavilion at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022.  REUTERS/Peter Cziborra/File Photo
LMT
-

By Gabriel Araujo

GAVIAO PEIXOTO, Brazil (Reuters) -Brazilian planemaker Embraer sees India, Saudi Arabia, the European Union and the United States as strategic markets for its defense unit as it looks to expand sales of the C-390 Millennium, the head of Embraer Defense said on Tuesday.

India has an open tender to buy military planes while Saudi Arabia, looking to replace an aging fleet of Lockheed Martin (NYSE:LMT)'s C-130 Hercules, is currently in "early engagement" with Embraer, Bosco da Costa Junior told reporters at an event.

"They don't have an open tender, but they need to replace their old C-130s. We did a lot of studies and concluded that the (Embraer) C-390 could deliver additional capability in this replacement process," Costa Junior said.

A potential Saudi purchase could reach 25 units, and Embraer expects the country to make a decision in two to four years, the executive added.

In addition to Embraer's home country Brazil, nations such as Portugal, Hungary, the Netherlands, Austria, the Czech Republic and South Korea have selected the planemaker's military transportation aircraft.

Expanding its presence abroad with more C-390 sales has been a key goal of Embraer's defense division, which also sees Sweden as a potential customer. It has partnerships with Mahindra in India and Saab in Sweden to introduce the plane.

Embraer has also been "aggressive on several fronts" in the United States, Costa Junior said, including exploring opportunities for mergers or acquisitions as well as pitching the C-390 to the U.S. Marines, Air Force and special forces.

"We do believe that the C-390 could add additional value to those entities in the U.S.," the executive said. "One thing is clear to us: We would like to become a partner of the U.S. government."

© Reuters. FILE PHOTO: Signage for Embraer is seen on a trade pavilion at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022.  REUTERS/Peter Cziborra/File Photo

Asked if any potential relationship with China could compromise connections with the U.S., Costa Junior stressed that Embraer's defense business had no relationship or any kind of discussions with the Asian superpower.

"We are 100% U.S.- and NATO-oriented," he said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.