mn investment by Embraer in Asia Pacific

New Delhi, Apr 22: Brazilian plane maker Embraer has unveiled plans to significantly expand its presence in Asia Pacific with an investment of 40 million dollars to be made in 2007.

The plans include new commercial agreements and collaboration with industry service providers that will allow it to offer enhanced training and spare parts distribution to its growing number of customers in the region.

The expansion is a direct result of the company's growing orders for regional jets which have reached a firm backlog of 128 aircraft for the Asia Pacific region, including China.

Embraer will provide increased spare parts support throughout the region in conjunction with Menlo Worldwide and training with a global training provider located in Singapore.

Investments in these activities will be made through a Singapore incorporated wholly-owned subsidiary called Embraer Asia Pacific Pte Ltd which will also be responsible for marketing and sales of new aircraft in the region.

The number of staff at the Singapore headquarters will double to more than 40 employees this year to support these plans.

Company's executive vice-president for airline market division Frederico Fleury Curado said: ''Asia is an extremely important region for Embraer. Recent sales have demonstrated that the market here is well suited to our products and we want to make sure that our new customers in the region can benefit from the best possible support services.'' Added Mr Ko Kheng Hwa, managing director of the Economic Development Board: This is the first significant investment in aerospace industry from Brazil, and will add diversity to the vibrant aerospace industry cluster.

''It reaffirms our industrial strengths in supply chain efficiency and aerospace maintenance, repair and overhaul (MRO) and gives a strong boost to our effort to develop Singapore into a premier aviation training hub in Asia.'' Embraer's collaborative arrangement with Menlo Worldwide covers managing and delivering warehousing, inventory management and distribution services based from a modern facility at Singapore's Changi Airport Free Trade Zone.

Embraer has also unveiled plans to position a full flight simulator. By the year-end, its regional jets will be flying in India, Australia, China, Taiwan and Thailand.

Menlo is a subsidiary of Con-way Inc, a 4.2 billion dollar freight transportation and logistics company.

UNI