21 May 2014
Embraer S.A. (NYSE: ERJ) said it has opened the final assembly line of the KC-390 military transport at Embraer´s plant in Gaviao Peixoto, Sao Paulo.
Embraer and the Brazilian Air Force signed the series production contract of the KC-390, marking the beginning of a new phase of the project, which began to be developed in 2009. The contract provides for the purchase of 28 aircraft over a period of ten years, with the first delivery scheduled for the end of 2016. Besides the aircraft, the contract provides for supplying a logistical support package, which includes spare parts and maintenance. At a total value of RUSD7.2bn, the contract still depends on complementary documentation in order to go into effect, which is expected to occur within 90 days.
The KC-390 is a joint project of the Brazilian Air Force with Embraer to develop and produce a tactical military transport and aerial refueling airplane that is a significant advance in terms of technology and innovation for the Brazilian aeronautics industry.
The airplane will be produced at the Gaviao Peixoto industrial plant, in outstate Sao Paulo, in facilities including more than 30,000 square meters of hangars, where the first prototype is already in the structural assembly phase. Final assembly is planned to begin in June.