Embraer To Build Jets In China

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In Rio de Janeiro last week, political leaders from Brazil and China signed an agreement that will allow Embraer to start building business jets in China. The deal creates a partnership between Embraer and the Aviation Industry Corporation of China (AVIC) to build Legacy 600 and 650 jets using a facility already in place in Harbin, China. The new operation is expected to produce about 20 jets a year for the Chinese market. The first Embraer jet to be built in China is scheduled to be completed by the end of next year.

Embraer negotiated with China for about two years to reach the deal. Originally, Embraer wanted to build regional jets at the Harbin facility, but their E190 would have competed against a Chinese-built aircraft. Embraer won't be without competitors in the country -- Cessna signed a deal with AVIC in March to build business jets in China.