The establishment of the first Embraer plant in Mexico
By Adina Moloman
Sources: The Wall Street Journal, Reuters
Over the last years Mexico government was focusing on the project of building an aerospace industry and eventually Mexico becoming Hub for Aerospace Industry. The results were positives, considering that this sector has averaged 20-25% growth the past five years, while attracting aerospace multinational companies such Bombardier, General Electric Co, Boeing Textron Inc.’s Cessna Aircraft Co, Airbus etc, operating at local levels as Mexican Maquiladoras.
With this project Mexico is betting that higher-end industries like aerospace will be a key part of its future. Part of this effort, is also the announcement made a few days ago, over the establishment of the first Embraer[1] plant in Mexico. Embraer, the world’s largest maker of regional jets, negotiated with the French Group Zodiac Aerospace[2] to create a joint-venture in Mexico that will manufacture components / making cabin interior elements for the E-170 and E-190 regional jets.
According to the declaration of the Embraer’s Chief Operating Officer , Zodiac and Embraer companies, would also develop interiors for future aircraft, considering that Embraer is drafting plans to upgrade its regional jet lineup with new engines and a potentially extended version of its largest plane by 2018.
The plant in Mexico will manufacture interiors for their family of E-jets and for high technology airplanes. Details over the amount of the investment or the location of the new facilities were not revealed so far.
The strategy of the Brazilian company, Embraer, is to bet on the recovery of the U.S. regional aviation market, estimating growth after years of stagnation, and other than that, there is also a steady growth market in Latin America, which encourages this kind of investment in this strategic area. On the other side the decision of penetrating the North American market is to compensate the decline in the European market.
[1] Embraer, the aviation Brazilian company is making the design, development, manufacturing, sales and technical support for commercial, agricultural and executive aviation, and is now entering a new level in the defense segment.
[2] Zodiac Aerospace is a French corporation, a world leader in aerospace equipment and systems for commercial, regional and business aircraft, as well as helicopters, specialized in the production and development of on-board systems, safety systems and cabin interiors.
