Boeing’s announcement Thursday of a proposed joint venture with Brazilian plane manufacturer Embraer gives the U.S. giant much more than a new line of smaller jets.
It will establish a major new Boeing center of engineering design and manufacturing, the first outside the U.S.
If the deal is finalized, with many details still to be negotiated and approval not expected before the end of 2019, Boeing will pay $3.8 billion to take 80 percent ownership of Embraer’s commercial jet business.
Two jet-makers, big and small
Boeing:
Headquarters: Chicago
Employees: 140,000, including 65,000 in Washington state
Commercial jets delivered last year: 763
Revenue: $93.4 billion
Net profit: $8.2 billion
Market value: $194 billion
Commercial jets: 737, 747, 767, 777, 787
Firm order backlog: 5,864
Other aircraft: 737 BBJ, KC-46 tanker, P-8 submarine hunter, F/A-18 and F-15 fighters
Embraer:
Headquarters: outside São Paulo, Brazil
Employees: 18,500, including nearly 1,800 in Florida
Commercial jets delivered last year: 101 regional E-jets
Revenue from commercial jets: $3.4 billion
Total revenue from commercial jet, executive jet and military aircraft: $5.8 billion
Net profit from commercial jet, executive jet and military aircraft: $263 million
Market value: $5 billion
Commercial jets: E-175, E-190, E-195
Firm order backlog: 435
Other aircraft: Lineage, Phenom and Legacy executive jets; KC-390 tanker, A-29 Super Tucano light attack plane
Market value as of 7/04Other data for 2017 Source: Boeing, Embraer, SP Capital IQ
The proposed deal means Embraer’s lineup of small regional jets, called E-jets, can be integrated into Boeing’s
Article source: https://www.seattletimes.com/business/boeing-aerospace/boeings-embraer-deal-is-a-key-strategic-play-for-the-future/