financetom
Business
financetom
/
Business
/
Embraer formalizes C-390 sales to Austria, Netherlands; deliveries from 2027
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Embraer formalizes C-390 sales to Austria, Netherlands; deliveries from 2027
Jul 22, 2024 10:44 AM

FARNBOROUGH, England (Reuters) - Brazilian planemaker Embraer ( ERJ ) on Monday signed the contract to formalize the sale of nine C-390 Millennium military aircraft to the Netherlands and Austria, further expanding its defense order backlog.

The two European countries had previously selected the aircraft to replace their aging fleets of Lockheed Martin's ( LMT ) Hercules C-130s, but a final deal with both nations placing a joint order was still pending.

The firm order announced at the Farnborough Airshow includes five aircraft to the Netherlands and four to Austria, with deliveries expected to commence in 2027 and conclude by 2030, according to the Brazilian firm.

"It is one of the most important days in the history of Embraer Defense & Security as it represents our largest contract for C-390 exports," Embraer's ( ERJ ) defense head Bosco da Costa Junior told Reuters.

Expanding its presence abroad with more C-390 sales has been a key goal of Embraer's ( ERJ ) defense division, including selling the military transportation airplane to NATO members such as the Netherlands.

In addition to the two European countries and Embraer's ( ERJ ) home country Brazil, nations such as Portugal, Hungary, the Czech Republic and South Korea have also tapped the aircraft for their fleets.

Austria and the Netherlands "had already selected the C-390 as the platform meeting all their requirements but now that becomes a purchase commitment, with deliveries and the aircraft being added to our production line," Costa Junior said.

The company did not disclose the deal's price tag.

Embraer ( ERJ ) is currently working to increase output of the tactical airplane. Its production line was planned for 18 aircraft per year, but this year four planes are being delivered and next year another six, according to Costa Junior.

"We forecast (annual) production to reach 12 aircraft by 2030," the executive said. "The challenge right now is for supply chain to keep up with it. A few months ago we had a 'C-390 Day' with our main suppliers to make sure this ramp up will happen."

Embraer's ( ERJ ) defense backlog stood at $2.1 billion at the end of the second quarter, when it delivered one C-390 aircraft.

"This sale makes our backlog very NATO-concentrated, but we also had a sale last year to South Korea. Asia, Middle East and obviously Europe are regions where the C-390 has been standing out," Costa Junior said. "We are very optimistic about future purchases by other countries."

India, Saudi Arabia and the United States are seen as strategic markets for Embraer's ( ERJ ) defense unit, with Sweden also a potential customer.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
TCS bags order from Georgia state government to transform unemployment insurance system
TCS bags order from Georgia state government to transform unemployment insurance system
Oct 5, 2023
Tata Consultancy Services has been selected by the Georgia Department of Labor (GDOL) to replace its 1980s-era legacy platform with a scalable cloud-based unemployment insurance system that streamlines the claims process, the firm said in a statement.
Want India to be NetApp's largest market in Asia, says CEO George Kurian
Want India to be NetApp's largest market in Asia, says CEO George Kurian
Sep 25, 2023
In addition to their existing partnerships with tech giants such as Amazon, Microsoft, and Google, NetApp is determined to achieve the significant milestone of doubling its business in India within the next couple of years.
Generative AI won't cause job famine but will create more, says EXL CEO
Generative AI won't cause job famine but will create more, says EXL CEO
Sep 28, 2023
Rohit Kapoor, the Vice Chairman and CEO of EXL, asserts that generative artificial intelligence will not result in a scarcity of jobs; instead, it will foster job creation. Kapoor also underscored the importance of regulating generative AI and commended India for its regulatory approach in this regard.
CDIL Semiconductors: Focus on ATMP expansion; may restart wafer fabrication 
CDIL Semiconductors: Focus on ATMP expansion; may restart wafer fabrication 
Sep 29, 2023
Speaking to CNBC-TV18 at the inauguration of a surface mount semiconductor packaging line at CDIL Semiconductors' Mohali-based plant, Joint Secretary with the Ministry of Electronics and Information Technology, Amitesh Kumar Sinha, shared that the company is gearing up for expansion to enhance its market presence in sectors such as automotive, solar energy, and inverters.
Copyright 2023-2026 - www.financetom.com All Rights Reserved