Nov 11 (Reuters) - Embraer ( ERJ ) does not view the
election of Donald Trump as a setback for its efforts to
introduce the C-390 Millennium military aircraft in the U.S.,
the head of the Brazilian planemaker's defense and security
division told Reuters.
The company sees the U.S. as key for its military cargo plane -
along with India, the European Union and Saudi Arabia - and has
hired consultancy firm Oliver Wyman to help it explore the local
defense market.
Trump, who will succeed President Joe Biden in January, has
floated protectionist ideas including aggressive changes to U.S.
trade policies, such as a 10% or higher tariff on all goods
imported into the country.
But Embraer ( ERJ ) believes there is a gap in the U.S. military fleet
that the C-390 could fill, and expects that U.S. content and a
potential local assembly line will help sell the world's largest
economy on the plane's merits.
"The C-390 is already a product that complies with the Buy
America Act - that is, it meets the required percentage of
American content," Bosco da Costa Junior, head of Embraer's ( ERJ )
defense and security division, said in an interview on
Sunday.
"We see the second Trump term positively. I think Embraer ( ERJ )
can play an important role in some segments where we clearly see
a gap in the U.S.," he added. "Nothing changes in our strategy
towards the United States."
He noted that the Brazilian planemaker has a longstanding
relationship with the U.S., including the sale of commercial and
business jets.
U.S. commercial carriers are major buyers of Embraer's ( ERJ ) regional
jetliners, and the Phenom 300 business jet is the country's
most-flown aircraft, with an assembly plant located in
Melbourne, Florida.
"Our products in general have huge American content. Each
Embraer ( ERJ ) plane sold generates taxes, jobs, investment in the
United States," Costa added.
Embraer's ( ERJ ) defense and security division also has a footprint in
the country, which flies its Super Tucano light attack aircraft.
The company has a production line for the turboprop plane in
Jacksonville, Florida.
Establishing a C-390 final assembly line in the U.S. is a
possibility, depending on how sales evolve, Costa said, adding
that Embraer's ( ERJ ) goal was not to replace any operating aircraft
but instead add capabilities to the U.S. military.
The C-390 could be a fit for the U.S. Marine Corps, Air
Force and U.S. special forces, Embraer ( ERJ ) has previously said. A
U.S. delegation examined the plane during a multinational
training exercise organized by Brazil last week, Costa said.
The C-390, which has been selected by NATO countries such as
Sweden, the Netherlands, Portugal, Hungary and the Czech
Republic for their fleets, normally competes with Lockheed
Martin's ( LMT ) C-130 Hercules plane.