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05 June 2012

Luiz Carlos Aguiar, CEO Embraer Defense and Security WIll be more Aggressive in the Future

On 5 June 2012, Luiz Carlos Aguiar, CEO Embraer Defense and Security, gave a press conference on where the company is and explained that the company has changed on what can be done in the future. "We like to be seen as a leader in providing defense and security solutions for Brazil first, and then internationally," Aguiar said.

With an EBIT of 9-12% in 2011/2012, the growth rate is steady, and the backlog is $3.3 billion and 
"we expect to keep this to the end of the year," explained Luiz Carlos Aguiar, CEO Embraer Defense and Security.

Embraer Defense and Security was established 1 January 2011 with a presence in more than 40 countries.

(Graphic: Embraer)

"We'll build a leadership position through expansion of our portfolio of products," explained Aguiar in becoming a prime contractor in Brazil. "We are not buying cash-flow, we are buying capabilities."

New ventures include the Brazilian Army SISFRON Integrated Borders Monitoring System (estimated $5 billion; compromising seven different sub-systems, SATCOM, C4I, radars, UAS, COMMINT and more) and the Brazilian Army Satellite (estimated $400 million; participation in the first Brazilian Geostationary Satellite).



For both programmes Embraer Defense and Security will act as the main prime contractor and use other Brazilian companies as equipment suppliers and solution developers; and of course Aeroelectronica Industria de Componentes Avionicos SA (AEL) - Elbit System's subsidiary for UAS.
"Our idea is to develop new technologies in Brazil. It will be a great opportunity to leverage our technologies," he said.

To expand the portfolio of products, Embraer Defense and Security will "grow through acquisitions and partnerships," Aguilar explained. Some of which include atech, OrbiSat, OGMA, HARPIA, Santos Lab, and Visiona.

Embraer has revealed a new medium-altitude UAV now under development and aimed at first exclusively for the Brazilian defence and security market. The twin-boomed aircraft is being developed by the Harpia joint venture formed in September between Embraer and Elbit Systems subsidiary AEL.

Current programmes include the Super TUCANO (see recent post), of which 182 aircraft are on firm order. According to Aquilar, the total market forecast 2020 is 300 aircraft.
In modernisation programmes, the forecast is 234 aircraft.
Embraer's defense and government jets are currently operating in 12 countries in Latin America, Europe, Africa, and Asia; and 18 ISR aircraft (see previous post)  are in use with the Brazilian, Hellenic and Mexican Air Forces, and the DRDO/CABS. 15 aircraft are on order.

(Photo: Embraer)

The Embraer KC-390 will have its first flight in 2012, according to Aguilar, and has orders from six countries (Brazil, Colombia, Argentina, Chile, Portugal, and the Czech Republic). The LoI's totalise 60 aircraft.
The market forecast 2025 include 700 aircraft and $50+ billion.

(Graphic: Embraer)


(MILITARY TECHNOLOGY Super TUCANO cover)

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