Embraer Defense goes in search of partnership for new agreements
Valor Econômico
The new business unit created by Embraer in December last year, aiming to expand its operations in the areas of defense and security, is in process of establishing partnerships with national and foreign companies. The goal, said the president of Embraer Defense and Security, Luiz Carlos Aguiar to Valor, is more effectively meet the demands that are emerging in areas such as unmanned aerial vehicle (UAVs), integrated solutions for the segments of command , control, communications, computing and intelligence, known by the acronym C4I, communication equipments, radars and sensors.
With 1,436 employees and revenues that should surpass R$ 1.5 billion (US$ 882.4 million) in 2011, Embraer Defense and Security started its activities with a portfolio of US$ 3.2 billion in contracts. "By our projections, the unit will account for 15% of the company's revenue in 15 years. In 2020, our sector should represent 18% of the economic value estimated to Embraer as a whole", he said. Its major projects today, involving aircraft and onboard systems, include the modernization of the fighters A-4 (Navy), AMX and F-5, the development program of the transport aircraft KC-390 and the production of three aircrafts of aerial surveillance for the government of India.
It is also great the expectation of the CEO Aguiar regarding the chances of Embraer in the American bid for the purchase of aircrafts of the Super Tucano class. "We have a great plane, which has already been exported to seven countries other than Brazil". The model was also sold to two African countries. The participation of Embraer in U.S. bid, according to Aguiar, will be made through an association with an U.S. company, which is already being negotiated.
According to the executive, the expertise of Embraer in the management of complex projects will also be available to the Brazilian government in its ongoing infrastructure projects, aiming at events like the World Cup in 2014 and the 2016 Olympics. Besides the management capacity, Embraer also may participate in such projects as a supplier of equipment and systems through future associations that intends to close. Aguilar said that Embraer could still take care of the financial structuring of the contracts with its potential customers. "We have lots of experience and creativity in assembling financial structures that mitigate the budgetary impact of these projects in public expenditure. Public-private partnerships would be an option", he said.
At this time, the focus of Embraer's Defense and Security is the Brazilian market, said the executive, but without neglecting the overall picture in the medium and long term. Aguilar stressed out that the aircraft manufacturer must reveal all their skills and go in search of a new direction without losing focus on what it does today and enlarge the range of projects it is doing. According to Aguiar, in the UAV segment, Embraer Defense and Security has a strategy in place, which will be put into practice through an association, probably involving equity participation. "We are talking with several companies, but we are already in the definition phase and our goal is to break into the field of UAVs".