Embraer says it remains in negotiations over Chinese plant

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Embraer says it has not made a final decision regarding the fate of its Chinese assembly plant Harbin Embraer, contradicting a report today that the airframer has opted to shutter the facility.

"Regarding China: this is no news as nothing has been decided. Negotiations have not been concluded," says an Embraer spokeswoman.

Brazil's Estado news agency today reported that Embraer has decided to close the plant. It quoted Embraer executive vice-president, airline market Paulo Cesar de Souza e Silva as saying that the Chinese see Embraer as competitors, and that a letter from Embraer to the Chinese government concerning E-Jets production received no reply.

 

 
   

For several years Harbin Embraer produced ERJ-135/140/145 regional jet aircraft in Harbin, China. But demand for small-sized regional jets dried up, and Embraer warned earlier this year that it might need to close the plant. The last ERJ-145 is slated to be delivered to Hainan Airlines in the first half of 2011.

Chinese firm Comac, meanwhile, is developing the 150-seat C919 commercial aircraft as well as the 90-seat ARJ21, which will compete with Embraer's E-Jets.