New Embraer Defense Unit

In the early 1940s and 1950s, Brazil began to recognize the need for a local manufacturer of both domestic and military aircraft. The government made investments to establish a government owned company, and in 1969 Embraer was created. It became a privatized company in 1994, and is today a successful aerospace conglomerate that specializes in executive and commercial aircraft. It has always supplied the military with aircraft as well, but the decision to establish a military division to meet the requirements of Brazil’s defense forces was recently announced.

With its headquarters in São José dos Campos, Embraer has branched out to various different countries and is a company that is known and respected worldwide. It only began catering to the military during the 1970s and it is a market that has developed over the years, with the defense division of the government becoming one of its biggest clients. The company has therefore made the decision to found a Defense Unit within Embraer that will concentrate solely on military aircraft and products. The company stated that thirteen percent of its revenue this year was generated by its defense products, and it is estimated that in 2011, they can expect an income of approximately 1.5 billion reais (or $875.1 million) from the Embraer Defense and Security Unit. Chief Executive of Embraer, Frederico Curado, announced that the new division will be overseen by Luiz Carlos Aguiar, who is the Chief Financial Officer. In regard to the new division, Curado said: “Brazil has a growing relevant role on the global geopolitical scenario and has established a long-term vision for strengthening its defense industry.”

Its reputation as the world’s fourth largest aircraft manufacturer proceeds Embraer, and over thirty countries and their defense forces work with and purchase Embraer products. It has six standard military vehicles that it produces, which include anti-submarine warfare craft, light attack aircraft, surveillance aircraft and maritime aircraft. Aguiar hopes that the new unit will be able to grow rapidly under his guidance and increase their export market in regard to military aircraft and transportation. It is a new start for the military division of Embraer, and looking at the history of the company and its current military responsibilities, it is believed to be a unit that will begin to catch up with the commercial divisions of the company.