Embraer Adds Tech-Support subsidiary in China

 - September 22, 2010, 8:14 AM

Ten years after Embraer began doing business in China by setting up a representative office in Beijing, it has established its first wholly owned subsidiary there. Embraer China Aircraft Technical Services Company  (ECA) is based in Beijing, and the company anticipates investing as much as $18 million.

The focus of the initial entry into the market in 2000 was to develop market strategy, provide after-sale services and promote products and industrial cooperation with Chinese aviation pioneers, according to a company spokesperson. In 2003, Embraer and the Aviation Industry Corporation of China established Harbin Embraer Aircraft Industry. The joint venture for producing commercial jets for Chinese airlines delivered its first aircraft in 2004.

Embraer says its customer base in China has grown steadily to the point that it warranted the development of ECA. The new subsidiary will cover logistics and parts sales as well as consulting services for technical issues and flight operations. Currently, more than 70 Embraer aircraft are operating in China.