Embraer sees Chinese role in strengthening supply chain, executive says

5:22 am Wednesday, November 13th, 2024

By Sophie Yu and David Kirton

ZHUHAI, China (Reuters) – Brazilian planemaker Embraer said on Wednesday at China’s largest air show in Zhuhai that it planned to focus on strengthening its supply chain, with Chinese companies able to play a role.

Embraer is the world’s third-largest planemaker and focuses on up to 150-seat single-aisle regional and executive aircraft, sitting just below Airbus’ and Boeing’s best-selling A320 and 737 families and rivalling the Airbus A220.

At Zhuhai, Embraer’s chief commercial officer, Martyn Holmes, noted that China’s President Xi Jinping would soon visit Brazil. The G20 summit will be held there this month.

“I think it’s an exciting moment for us to be having that (supply chain) conversation with Chinese suppliers and looking how we evolve,” Holmes said.

China is Brazil’s top trade partner. Brazilian President Luiz Inacio Lula da Silva said earlier this year that he wanted to discuss a “long-term strategic partnership” with China.

Industry sources have said Embraer is looking for a strategic partner for a possible new passenger jet project to compete more directly with Airbus and Boeing.

Since the COVID-19 pandemic Embraer has pushed to expand in Asia with its latest range of more efficient E2 jets, saying post-pandemic travel trends in the region created more demand for more frequent secondary and tertiary airport connections.

Singapore Airlines’ low-cost offshoot Scoot is the first operator of the E2 jet in the Asia-Pacific region.

Asia, led by China, has been slower to return to pre-pandemic air traffic levels than other regions.

Embraer had said that China’s domestic market has enormous potential.

Embraer had struggled to find new business in China since the 2016 closure of a joint venture to manufacture executive jets in the city of Harbin.

However, its E190-E2 and E195-E2 models received Chinese certification in 2022 and 2023, and in June, Embraer inked a deal with a Chinese company to convert its E-jets to freighters.

(Writing by Lisa Barrington and Gerry Doyle; Editing by Christian Schmollinger)