The joint-venture between Boeing and Embraer is close to the birth
The two companies are waiting to meet the Brazilian government
Embraer and Boeing have prepared the Memorandum of Understanding and they are waiting to meet the Brazilian government to present the plan that will lead to the creation of a joint-venture controlled by Boeing, with a minority in the hands of Embraer. However, this will only apply to civil aviation, because the military sector of the Brazilian aeronautical industry will remain exclusive competence of the same, given that the government of Brasilia considers it strategic at national level.
The meeting to confirm the birth of this agreement will most likely be organized in the next two weeks, according to the Brazilian website "Valor Economico". A meeting between the directors of the two companies already took place last week in Évora, Portugal, where Embraer has its own production site.
The memorandum prepared in tune by Boeing and Embraer guarantees the best possible conditions for the San Paolo industry, as it foresees that research and development regarding Brazilian aircraft remain in Brazil, keeping the same engineers as employees. In addition there are also the ways in which the activities will be divided, how the purchases will be shared and how this joint venture will make sure to increase the sales of military aircraft produced by Embraer.
The military aircraft leaving the factories of Embraer and all the research behind them were the points of greatest friction, because in Brazil the fear was that Boeing wanted to buy the whole company, thus removing to Brazil the capabilities of its military industry . In addition to this, the defense sector of Embraer works closely with that of civil aviation and, often, innovations and ideas are shared internally. The Brasilia government therefore wants to understand how the agreement will work in detail, and how to manage the minority participation of the state within Embraer.
During the long meetings between the two companies, however, it was found a way to avoid a veto by the Brazilian government, deciding that when the joint-venture between Boeing and Embraer will be established, the defense sector will remain separate, and will be born a 100% company owned by Embraer.
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