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Boeing and Embraer wars threaten Évora companies

 In Companies, Economy, News

The commercial war between Brazilian aircraft manufacturer Embraer and US manufacturer Boeing could pose a threat to aircraft component factories in Évora.

The war broke out because of the failure on the partnership agreement between the two aeronautical manufacturers. Although the potential fallout from the row is not yet know, the conflict is expected to have an effect on the manufacturing units that Embraer operates in Évora which were included in the initial partnership agreement.
“Embraer firmly believes that Boeing unduly terminated the Global Operation Agreement (MTA) and made false claims as an excuse to try to avoid its commitments to close the transaction and pay Embraer the purchase price of US $ 4,2 billion [about 3,9 billion euros at the current exchange rate]. The company believes that Boeing has adopted a systematic pattern of delay and repeated breaches of the MTA, due to the unwillingness to complete the transaction, its financial condition, the 737 MAX and other commercial and reputation problems, ”Embraer responded in a statement. , to the announcement by Boeing that it had withdrawn from the agreement.
The American aeronautical manufacturer, which has been in a weak financial situation for more than a year, aggravated by the Covid-19 pandemic, announced today, April 25, that it was renouncing the referred partnership agreement, claiming that Embraer “did not met the necessary conditions ”of the contract, casting doubts on the operation of the braileiro group, namely in Portugal.
“Embraer believes that it is in full compliance with its obligations under the MTA and that it has fulfilled all necessary conditions foreseen until April 24, 2020”, guarantees the Brazilian aeronautical construction communiqué, adding that “the company will seek all the appropriate measures against the Boeing for damages suffered as a result of undue cancellation and breach of the MTA ”.
The same communiqué assures that “Embraer remains a successful, efficient, diversified and vertically integrated company, with a history of success in serving customers with products and services, built on a solid base of industrial and engineering resources”.
“The company is an exporter and developer of technology, with global operations in defense, executive and commercial aviation”, recalls the aforementioned statement, adding that its employees “will continue to offer high quality products and services with great pride to our customers. which they depend on Embraer, every day ”.
“Our history of more than 50 years is aligned with many victories, but also with some difficult moments. They have all been overcome. And that is exactly what we are going to do again. Overcoming these challenges with strength and determination ”, concludes the statement from Embraer.
In Évora, Embraer manages two factories – Embraer Metálicas and Embraer Composites – for the manufacture and assembly of aircraft components, in addition to an engineering and technology center for the aeronautical sector.
At the end of 2018, Embraer’s industrial and technological hub in Évora already employed around 450 people. With the formation of the aforementioned partnership with Boeing, Embraer was not going to disappear completely from the map, because it would continue to be a shareholder of 20% of the capital of the joint venture, but the control, with the remaining 80%, would belong to the Americans. .
“From next April, when all administrative and legal procedures related to the constitution of the partnership between Boeing and Embraer, announced about a year and a half ago, Boeing will start to manage the two industrial units previously controlled by Brazilian group in Évora. And this change will have unavoidable effects on the operation of the Brazilian group in Portugal, although it is still not possible to see their real scope ”, the Jornal Económico advanced on 26 January, but this scenario has faded from today.
Embraer is a global aerospace company with headquarters in Brazil, which completes 50 years of experience in the commercial aviation, executive aviation, defense & security and agricultural aviation segments.
The company designs, develops, manufactures and markets aircraft and systems, in addition to providing after-sales service & support to customers.
Since it was founded in 1969, Embraer has delivered more than eight thousand aircraft. On average, every 10 seconds an aircraft manufactured by Embraer takes off from somewhere in the world.
The aircraft produced by Embraer annually carry over 145 million passengers.
Embraer claims to be a leader in the manufacture of commercial jets with up to 150 seats and the main exporter of high value-added goods in Brazil.
The company maintains industrial units, offices, service centers and parts distribution, among other activities, in the Americas, Africa, Asia and Europe.
In Portugal, in addition to the two industrial units in Évora, Embraer controls 65% of the capital of OGMA, in partnership with the Portuguese State.


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