Embraer plans defense office in Europe as C-390 sales pick up

Published 11/11/2024, 10:01 AM
Updated 11/11/2024, 10:05 AM
© Reuters. FILE PHOTO: Embraer's C-390 Millennium military aircraft is seen at the firm’s headquarters in Sao Jose dos Campos, Brazil June 18, 2024. REUTERS/Gabriel Araujo/File Photo
ERJ
-

By Gabriel Araujo

(Reuters) - Brazilian planemaker Embraer's defense unit is planning to open an office in Europe, as sales of its C-390 Millennium military cargo aircraft gain pace in the region.

The Czech Republic, Austria, the Netherlands and Sweden have all recently moved to purchase the aircraft, joining current operators Portugal and Hungary and underscoring strong momentum for the C-390 in Europe.

"We are interested in opening an Embraer Defense & Security office in Europe, which would very likely be in Portugal," defense unit Chief Executive Bosco da Costa Junior told Reuters in an interview on Sunday.

Portugal was the first European and NATO country to place an order for the C-390, in 2019, and received its first aircraft last year. It is also expected to soon fill orders for Embraer's light attack fighter, the A-29 Super Tucano.

The Brazilian planemaker had earlier this year named the European Union as a key market for sales of the C-390, along with India, Saudi Arabia and the United States.

The latest country to select the aircraft for its fleet was Sweden, which said on Saturday it would open negotiations for the C-390 to replace its aging fleet of Lockheed Martin (NYSE:LMT)'s C-130 Hercules turboprops.

"This office's goal is to make Embraer Defense & Security a European player. We want it to have all the security clearances required by NATO," Costa said.

Expanding its presence abroad with more sales of the C-390 has been a key goal of Embraer's defense division, including getting more orders from NATO nations.

"We want to invest in Europe. We want a seat at the table. There is a lot of European content in our aircraft, and with new setups we have been increasing the European content," Costa said.

© Reuters. FILE PHOTO: Embraer's C-390 Millennium military aircraft is seen at the firm’s headquarters in Sao Jose dos Campos, Brazil June 18, 2024. REUTERS/Gabriel Araujo/File Photo

"It's a very strategic and well-considered step aimed at making Embraer Defense & Security increasingly NATO and European."

Europe represents 14% of the C-390's total addressable market, according to BTG Pactual analysts, behind only Asia-Pacific (34%) and the Middle East (32%).

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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.