Embraer increases bet on defense
Valor Econômico
Embraer announced, on Friday, the creation of Embraer Defesa e Segurança (Defense and Security). The new company will be chaired by the CFO and IRO, Luiz Carlos Aguiar. The creation of the company, according to CEO of Embraer, Frederico Fleury Curado, reflects the need of expansion of the operations of the company, currently more focused on aerospace activities, to the areas of defense and security.
The Executive also mentions as new business opportunities the system of control, communication and command aimed at the Blue Amazon, the need of systems to promote greater integration among the Brazilian Armed Forces, besides security systems for events like the 2014 FIFA World Cup and the 2016 Olympics.
According to Curado, Embraer is qualified to develop new technologies in those areas, not only for the Brazilian defense market. "The Super Tucano is a clear example of platform of success in the foreign market. At the moment we are delivering aircrafts of the model to Indonesia, the Dominican Republic, Ecuador and Chile". The Super Tucano has also been sold to Colombia.
Curado also stressed out Embraer will always be directing its businesses in the area of defense aligned with the Brazilian Government and with the objectives set by the National Defense Strategy. "The F-X2 program is an example of that attitude of Embraer, which sought to stay neutral in the process, having signed technological and industrial partnership agreements with the three companies that are competing for the supply of the fighters to the Brazilian Air Force".
The new President of Embraer Defesa e Segurança already has experience in the area of defense. He was the Vice President of that segment at Embraer between 2006 and 2009. In release to the press, Aguiar said that security and defense business of Embraer should exceed earnings of R$ 1.5 billion (US$ 882.4 million) in 2011.