By Cyril NDEGEYA
The giant American aircraft maker Boeing and the Brazilian Embraer announced they have signed a Memorandum of Understanding to establish a strategic partnership that positions both companies to accelerate growth in global aerospace markets.
The signed joint venture comprises the commercial aircraft and services business of Embraer to align with Boeing’s commercial development in a strategic way including production, marketing and lifecycle services operations.
According to a Boeing’s press statement,it is stated that under the terms of the agreement, Boeing will hold an 80 percent ownership stake in the joint venture and Embraer will own the remaining 20 percent stake.
“By forging this strategic partnership, we will be ideally positioned to generate significant value for both companies’ customers, employees and shareholders – and for Brazil and the United States,” said Dennis Muilenburg, Boeing’s Chairman, President and Chief Executive Officer. ”
The joint venture will become one of Boeing’s centers of excellence for end-to-end design, manufacturing, and support of commercial passenger aircraft, and will be fully integrated into Boeing’s broader production and supply chain.
A competitive outcome from this joint venture would deliver to the market a highly complementary commercial airplane portfolio ranging from 70 seats to more than 450 seats and freighters with the best-in-class products and services to better globally satisfy the service consumers.
“This strategic partnership is a natural evolution of the long-standing history of collaboration between Boeing and Embraer on a range of aerospace initiatives over almost three decades,” said Greg Smith, Boeing Chief Financial Officer and Executive Vice President of Enterprise Strategy & Performance.
Boeing and Embraer will benefit from a broader scale, resources and footprint, including global supply chain, sales and marketing, and services network, which will enable them to capture benefits from best-in-class efficiencies across the organizations.
Additionally, the strategic partnership will provide opportunities to share best practices in manufacturing and across development programs.The press release states…