São Paulo – Embraer, a Brazilian aircraft manufacturing company, may also operate in the energy industry. At an assembly held recently, shareholders have approved changes in the company’s social goals, which now also include energy and security sectors, in addition to aeronautics.
The chairman of the company, Frederico Fleury Curado, stated this Thursday (14th) that wind turbines may be the initial field of work. "It is an area that matches our competencies, a young industry – 25 years old –, and a technology that is not yet fully mature," he claimed after a year-end luncheon with journalists in São Paulo.
The executive underscored, however, that the change in social goals does not make it a necessity to do new business, but rather it enables the company to look into potential opportunities. Curado added that the options in the energy industry should be analyzed in the medium term.
He stated that first of all, it must be defined in exactly which segment the new investment will be made, consider who the clients are, and check what new features the company may offer. The idea, according to Curado, is to start a project "with clear perspectives of return."
The changed statute, however, has already led to a practical result, namely the establishment of a unit turned exclusively to security and defence. The chairman of the new division and vice-president of finance at Embraer, Luiz Carlos Aguiar, stated that the set goal is to increase the segment’s share in the company’s revenues from the current 10% to 20% by 2015.
In this respect, in addition to selling existing aircraft, such as the Super Tucano, a turboprop aircraft for training and light attack purposes, and surveillance jets based after the ERJ 145 commercial jet model, the enterprise is investing in developing its KC-390 military cargo vessel.
The main new development, however, is the seeking of business outside the aeronautical industry, especially in computerized security systems. As an example, Aguiar mentioned the sale of aerial surveillance aircraft to Mexico, which included the setting up of a monitoring and control base not only for the aircraft, but also for radars and other ground equipment.
"We coordinated the contract and subcontracted the equipment suppliers," said Aguiar, highlighting that the role of Embraer in this case was to develop software and integrate the systems.
He added that this sector offers opportunities in Brazil too, because the country needs to improve its surveillance systems at land and sea borders. "All of this is going to create opportunities for companies who apply in order to develop systems of the type," claimed Aguiar.
Results
Regarding the company’s performance in 2010, Curado stated that the forecast results have been achieved, and that by the end of the year, revenues should reach US$ 5.25 billion. He added that the year was one of resumption, after the international financial crisis, and that 2011 will still be a period of recovery, but that the investment volume has been maintained. "We have a positive outlook on the future," he said.
The fear of new orders not being placed due to the international economic situation seems to have passed. The chairman stated that over 80 commercial aircraft should be delivered next year. "As soon as the market began to recover, they [the clients] started placing orders," he claimed.
To that extent, Curado told ANBA that the Middle East continues to grow. "It is a region whose presence is increasing worldwide, not only on the Brazilian market," he said.
He added that the region’s economy remained strong, despite the crisis, and that even though the price of oil, the leading income source of various Middle Eastern countries, has dropped, it remains at a good level.
*Translated by Gabriel Pomerancblum
