Embraer has sold its two Portuguese aerostructure units to Aernnova in Spain for $172 million. At the same time, the two companies have signed a long-term supply agreement to safeguard the supplies of assemblies to Embraer, they announced on January 12. Embraer divests its Evora-based units as it seeks to optimize its asset strategy.
The transaction covers Embraer Portugal Estruturas Metalicas and Embraer Portugal Estruturas em Compositos, both based in Evora. Both were wholly-owned by the Brazilian OEM and produce parts for the wings, vertical and horizontal stabilizers for the Embraer Praetor 500 and 600 business jets, the E1, and E2 commercial airliners, and the KC-390 Millennium military transporter. The units employ some 500 staff.
Embraer President and CEO Francisco Gomez Neto says in a media statement that the Portuguese units are sold as “an important step in our asset optimization strategy, which aims to maximize the use of our units and improve the company’s profitability.” The sale could reduce Embraer’s net debt to EBITDA ratio to 3.2 compared to 3.9 last year, says JP Morgan. Embraer ended Q3 with a $45 million net loss. The transaction is expected to be completed this first quarter but is subject to certain conditions set out by the two parties.
For Aernnova, the purchase of the Evora plants means an opportunity to grow and strengthen its position as a tier-1 supplier in the single-aisle aircraft segment. “We plan to further develop the operations of the facilities and establish Evora as a global aerostructure manufacturing benchmark, with the technical and commercial support of Aernnova Group,” its CEO Ricardo Chocarro says in a media statement. The strategic agreement secures the supply of production packages to Embraer and brings some $170 million in annual revenues to Aernnova. The company is owned by a consortium of predominantly Spanish banks and private investment firms.
Although it is based in Spain, Aernnova has a presence in six countries, including Brazil, China, Mexico, the US, the UK, and Bulgaria, and employs 4.100 people. The company has had a long relationship with Embraer and has designed and produced wings for the ERJ-130, -140, and -145. It also designs and builds the empennage with horizontal and vertical stabilizers of the E170 to E190, plus the E190-E2 and E195-E2. The forward fuselage for the E2 is also provided by Aernnova. For the KC-390, it produces the composite ailerons, flaps, rudder, rear fuselage, the cargo ramp and cargo door, the main wing box, and the engine pylons.
Aernnova has a large workshare with Airbus
Aernnova also produces the center wing box and tail cone for the Airbus A220, elevators and main gear doors for the A320neo and A330, the elevators, and rudder and wing trailing edges for the A350. Airbus also uses its cowlings and nose gear doors for the C-295 and A400M, the rear upper fuselage of the BelugaXL, plus various parts for the Eurofighter. Mitsubishi uses horizontal and vertical stabilizers on the CRJ-700, -900, and -1000.
The company also makes the wings for the Pilatus PC-24 business jet and Beechcraft models, plus various metallic and composite parts for airliners and Bell and Leonardo helicopters. It has a limited workshare in the Boeing 747-8F and used to be a supplier for the Airbus A380 and the 787. In November, Heart Aerospace selected Aernnova to design the structure for its ES-19 electric aircraft that should enter service in 2026.
Active as a journalist since 1987, with a background in newspapers, magazines, and a regional news station, Richard has been covering commercial aviation on a freelance basis since late 2016.
Richard is contributing to AirInsight since December 2018. He also writes for Airliner World, Aviation News, Piloot & Vliegtuig, and Luchtvaartnieuws Magazine. Twitter: @rschuur_aero.