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Embraer says it remains in negotiations over Chinese plant

Embraer has denied reports that it has decided to close its Chinese assembly plant Harbin Embraer, insisting that negotiations "have not been concluded".

The fuss follows a report from Brazil's Estado news agency, which claims Embraer has decided to close the plant. It quotes Embraer executive vice-president, airline market Paulo Cesar de Souza e Silva as saying that the Chinese see Embraer as a competitor 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 jets in Harbin. 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 due to be delivered to Hainan Airlines in the first half of 2011.

1000 embraer erj145
 © Embraer
Hainan Airlines regional subsidiary Grand China Express receives its first Embraer ERJ-145

China's 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.

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