Embraer to build cargo planes for Brazilian Air Force
Brazilian aeroplane maker Embraer has signed a deal to build a new fleet of 22 military cargo planes in a bid expand its revenue sources as the global commercial jet market struggles in the economic downturn.
The aircraft will be called KC-390 and will take seven years to develop in partnership with the Brazilian Air Force at a cost of $1.3 billion (£0.87 billion).
Embraer estimates that the market for cargo planes could bring in $18 billion for the company over the next 15 years and predicts that demand will grow to around 700 aircraft in that time.
The company’s vice president overseeing the defence and government businesses unveiled the deal at an industry seminar in Rio de Janeiro today.
It also revealed that it has signed a $140 million contract with the Brazilian Navy to upgrade 12 of its jets.
Paulo Wrobel, representative from the economic and trade sector of the Brazilian Embassy, said recently that the aeronautical sector is particularly important for the country’s economy.
He added that Embraer is working to remain profitable following job cuts last year.
