A unit of Embraer SA (ERJ) recently broadcasted establishment of a joint venture company with AEL Sistemas, the Brazilian subsidiary of an Israeli defence firm Elbit Systems.
Under the agreements, the parties established a joint company, Harpia Sistemas S.A (“Harpia”). Embraer Defesa e Seguranca will have 51% stake while AEL Elbit will hold 49% in their new venture.
The new company, based in Brasilia, has planned to operate unmanned aircraft systems, avionics systems and simulators, as well as contractor logistics support. Harpia is anticipated to operate initially in the Brazilian market, and soon to spread across the other defense aircraft markets of the world.
In April, the two companies jointly planned to develop unmanned aircraft for military and civilian purposes. The new ventureis expected to mark a milestone in Elbit’s long-term operations and Embraer’s strengthening of foothold in the Brazilian Market. Moreover, the collaboration between Embraer Defesa and AEL is anticipated to be of mutual benefit to both of the companies as well as the Brazilian customers
The creation of Harpia is seen to be in perfect coalition with Brazil’s national defense strategy having the potential for dual application of unmanned aerial systems and the technology generated through it. Both the partners expect it to be an important instrument for serving the needs of the armed and the security forces.
Elbit Systems and Embraer, with the support of AEL, have a successful track record of cooperative relationships. Presently, AEL provides avionics for the turboprop light attack and advanced training Super Tucano, as well as the avionics of the F-5M fighter, modernized by Embraer for the Brazilian Air Force.
About Embraer
Embraer S.A designs, manufactures and sells aircraft and aviation-related structural parts to the world’s commercial aviation, executive aviation and defense markets. The company’s product portfolio supporting strong customer orders and diversified global footprint, gives a tough competition to its peers, such as Boeing Co. (BA), Lockheed Martin Corporation (LMT), Northrop Grumman Corporation (NOC), etc.
