Embraer creates new Chinese subsidiary for logistics, spares

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Brazilian airframer Embraer has established a new subsidiary in China to provide logistics and spare parts sales as well as consulting services to customers in the region.

The Beijing-based Embraer China Aircraft Technical Services (ECA) unit was officially incorporated on 1 July and will be fully operational within a month, says Embraer, which has invested $18 million in the new business.

The establishment of the new subsidiary "demonstrates our long-term commitment and confidence on the growing Chinese aviation market", says Embraer China president Guan Dongyuan, who will head up ECA as CEO.

"Continuous improvement of customer support is vital to the ultimate success of Embraer's operations in China. Currently, there are more than 70 Embraer aircraft in service in the country, out of 105 firm orders. The new facility will certainly satisfy the demands of current and future customers," he adds.

Ten years ago Embraer created a representative office in Beijing to develop market strategy, guarantee after-sale services, and promote products and industrial cooperation with Chinese aviation pioneers. In 2003, Embraer and the Aviation Industry Corporation of China established Harbin Embraer in Harbin, northeast China. The joint venture assembles ERJ-145s.

However, with the last ERJ-145 slated to be delivered to Hainan Airlines in the first half of 2011, Embraer would like to bring E-Jets work to Harbin Embraer.

The manufacturer is waiting for the Chinese government to decide on its proposal to assemble E-Jets at Harbin Embraer or begin the process of shuttering the facility.