Embraer To Build Another Factory In Sao Paulo For Final Assembly Of Aircraft And Flight-Testing Activities
(Source : Embraer ; dated June 28, Web-posted July 20, 2000)

SAO JOSE DOS CAMPOS, Brazil ---Brazilian aircraft manufacturer Embraer today announced, in the presence of the Governor of the State of Sao Paulo, Mario Covas, that it will invest US$ 150 million to put up a new factory in São Paulo. The new facility will be located in the municipality of Gaviao Peixoto near the city of Araraquara, some 340 km far from its headquarters in Sao Jose dos Campos.

The new unit is Embraer's fourth factory and will generate up to 3,000 new jobs over the ten-year period subsequent to its startup. The company currently has two manufacturing facilities in Sao Jose dos Campos and one in Botucatu.

The decision to build a new plant was taken by Embraer's management in view of the increase of business on the international market and the fact that the company's existing manufacturing facilities will shortly reach the limit of their capacity for expansion.

The new factory primarily will be used to carry out flight-testing activities and for the final assembly of aircraft for the Defense and Corporate Aviation markets. It will also house a Service Center and have a new runway for flight-testing activities.

In search for a solution to its requirements Embraer studied a number of alternative sites, including the possibility of building the new facility in the Vale do Paraiba region, near its headquarters in Sao Jose dos Campos. However, specific prerequisites led the company to look at less densely populated areas and the final decision was made to build the new factory in Gaviao Peixoto, in the Araraquara region.

"Flight testing of high-performance military aircraft requires large amounts of available airspace for maneuvering because of the high speeds and distances involved", said Mauricio Botelho, Embraer's President and CEO.

Moreover, low-speed control testing requires special longer and wider landing fields that only exist in the Northern Hemisphere, thus obliging Embraer to send its aircraft prototypes on a periodic basis to these countries at a high cost to the company.

Sao Jose dos Campos will continue to be the site of Embraer's head offices, housing the administrative, sales and engineering departments as well as the production of aircraft for the Commercial Aviation market represented by the ERJ 135/140/145 and ERJ 170/190 families. The ERJ 170/190 jet family involves global investments on the order of US$ 850 million while the production of the ERJ 145/135/140 family should be expanded beyond current levels, meaning further investments in machinery and installations at the existing factory.

The capital expenditures to be made in the new factory reinforce Embraer's leadership position in the world aviation market, where it occupies fourth place in the ranking of the largest manufacturers of commercial aircraft. (ends)

ERJ 140 Performs Maiden Flight
New 44-Seat Regional Jet Will Be Availablein 1st Quarter Of 2001
(Source : Embraer ; dated June 27, Web-posted July 20, 2000)

SAO JOSE DOS CAMPOS, Brazil ---Embraer's newest product, the ERJ 140, a 44-seat regional, carried out today its first flight. Aboard the prototype, registered PT-ZJA, were Embraer test pilots Daniel Chun and Paulo Cesar Remiao accompanied by flight test engineer Roberto Becker. Taking-off from Sao Jose dos Campos' runway at 11:21am, the new jetliner attained a speed of 320 kts (Mach 0.78) and an altitude of 37.000 ft. during its maiden flight.

The ERJ 140 was launched in September of 1999 after detailed market analysis and studies that revealed a worldwide demand for some 750 jet airliners of this type over the next ten years. Embraer invested nearly US$ 45 million in developing this aircraft, which will have an approximate unit cost of US$ 15,2 million.

The ERJ 140 will perform an extensive flight test program to airworthiness certification and after receiving type certification from Brazilian (CTA) and United States (FAA) authorities, the aircraft will be available to the market in the 1st quarter of 2001. Once in production, it is estimated that nearly 80% of the forecasted demand for the ERJ 140 will be in the United States regional air transport market.

Following the "jet family" concept, the ERJ 140 will offer an high degree of commonality with other members of the ERJ family - the ERJ 145 and ERJ 135 - with the attending maintenance and operational benefits that include same crew type rating.

This coming July, the new regional jet will perform its first international flight, when it will be ferried to the Farnborough Air Show where it will be placed on static exhibit alongside the ERJ 145 and ERJ 135 and take part in that event's flight display program.

With headquarters in São José dos Campos, Brazil, and subsidiaries and offices in the U.S, France, Australia and China, Embraer is a customer-oriented company with more than 30 years of experience in designing, manufacturing, selling and supporting aircraft for the world's commercial and defense markets.

Founded in 1969, as a state owned company, Embraer was privatized in 1994 and employs more than 9,000 people. Embraer's present backlog exceeds US$ 20.8 billion, of which US$ 8.6 billion are firm orders and US$ 12.2 billion are options. It is currently the fourth largest commercial aircraft manufacturer in the world and the largest exporter company in Brazil.


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