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EMBRAER - EMPRESA BRASILEIRA DE AERONAUTICA S/A
SETS UP JOINT VENTURE IN CHINA WITH AVIC II
Sao Jose dos Campos, December 2, 2002 - Embraer - Empresa Brasileira de
Aeronautica S.A., (BOVESPA: EMBR3, EMBR4) (NYSE: ERJ), one of the leading
commercial aircraft manufacturers in the world, signed today an agreement to
build a production unit in China through a joint venture with Harbin Aircraft
Industry (Group) Co., Ltd. and Hafei Aviation Industry Co., Ltd. - companies
controlled by China Aviation Industry Corp. II, AVIC II. Embraer's first
industrial initiative outside Brazil will manufacture its renowned ERJ
135/140/145 family aircraft to better meet the needs of the Chinese market in
terms of commercial aviation products. The new company, denominated Harbin
Embraer Aircraft Industry Company Ltd., will be located in Harbin, capital of
Heilongjiang province.
"This event represents a landmark not just in the history of Embraer, but also
in the history of both countries' bilateral relations. China and Brazil have an
enormous potential for cooperation in different fields of interest, and we are
confident that this is but the first step towards many successful
accomplishments in the future. We firmly believe that Harbin Embraer Aircraft
Industry Company will be a powerful lever to expand the presence of our products
in this flourishing Chinese market which, for sure, will represent an important
share of Embraer's global operations," affirmed Mauricio Botelho, President and
CEO of Embraer, during the signature of the contract in Beijing.
"To cooperatively develop commercial regional jets will definitely bring win-win
results to both AVIC II and Embraer. I wish this Sino-Brazilian cooperative
program will set yet another successful model of South-South Cooperation
(Technical Cooperation among Developing Countries - TCDC)," stated the President
of AVIC II and Academician of China's Academy of Engineering, Dr. Zhang
Yanzhong.
Harbin Embraer Aircraft Industry Company Ltd. will be responsible for the
manufacturing, assembly, sales and after-sale support for the ERJ 135/140/145
family aircraft. The contract covers the production under license of all
versions of the ERJ family of regional jets, including the ERJ 135, ERJ 140 and
ERJ 145 aircraft, to be marketed primarily in the entire territory of the
People's Republic of China. The delivery of the first aircraft is scheduled for
December 2003.
The equity investment in the Joint Venture will be of US$ 25 million, 51% made
by Embraer. The new production unit will occupy an area of 24,000 sq. m.,
employing up to 220 people.
The facilities in Harbin extend Embraer's presence in China, where the Beijing
Representative Office was inaugurated in 2000. Embraer also implemented the
Beijing Distribution Center, which is jointly run with China Aviation Supplies
Import and Export Corp. Embraer's Distribution Center is a 750 sq. m. facility
that inventories more than 6,000 different aircraft spare parts and components;
it is electronically connected to other storage centers in Brazil, Australia,
England, France and USA, allowing customers to place purchase orders in real
time.
Currently there are 5 ERJ 145s flying in China, operated by Sichuan Airlines
Co., Ltd. The carrier is obtaining good levels of schedule and dispatch
reliability, while flying in some of the most demanding environments in the
world. The performance of this fleet has been highly satisfactory and is
establishing a reputable platform for Embraer's commercial jet product line in
the country.
General Information
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Embraer is one of the world's leading aerospace companies. With headquarters in
Sao Jose dos Campos, state of Sao Paulo, and offices and customer service bases
in Australia, China, France, Singapore and the United States, the Company as of
September 30, 2002 has a total workforce of 12,161 people. Embraer was Brazil's
largest exporter from 1999 to 2001, and
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second largest in 2002. As of September 30, 2002 its backlog for firm orders
amounts to US$ 9.6 billion, in addition to US$ 13.0 billion in options.
Embraer has 33 years of experience in designing, developing, manufacturing,
selling and providing after sales support to aircraft aimed for the global
airline, corporate and (more recently) defense markets.
For additional information please contact:
Embraer - Empresa Brasileira de Aeronautica S/A
Anna Cecilia Bettencourt
(55 12) 3927 1216
acecilia@embraer.com.br
Gustavo Poppe
(55 12) 3927 1106
gustavo.poppe@embraer.com.br
Milene Petrelluzzi
(12) 3927 3054
milene.petrelluzzi@embraer.com.br
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This document includes forward-looking statements or statements about events or
circumstances which have not occurred. We have based these forward-looking
statements largely on our current expectations and projections about future
events and financial trends affecting our business and our future financial
performance. These forward-looking statements are subject to risks,
uncertainties and assumptions, including, among other things: general economic,
political and business conditions, both in Brazil and in our market;
expectations of trends in the industry; our investment plans; our capacity to
develop and deliver products on the previously agreed dates; and existing and
future government regulations.
The words "believes," "may," "will," "estimates," "continues," "anticipates,"
"intends," "expects" and similar words are intended to identify forward-looking
statements. We undertake no obligations to update publicly or revise any
forward-looking statements because of new information, future events or other
factors. In light of these risks and uncertainties, the forward-looking events
and circumstances discussed in this press release might not occur. Our actual
results could differ substantially from those anticipated in our forward-looking
statements.
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