2023-10-11 00:30:37
© Reuters. President of Boeing for Latin America and the Caribbean, Landon Loomis 10/10/2023 REUTERS/Gabriel Araujo
SÃO JOSÉ DOS CAMPOS, Brazil (Reuters) – Boeing (NYSE:) on Tuesday opened a new technology and engineering center in Brazil, as it seeks to expand its global presence and leverage the expertise of a country the company sees as leading the production of sustainable aviation fuels (SAF).
The move comes more than three years after the company backed out of a billion-dollar deal to buy the commercial division of Brazilian aircraft manufacturer Embraer (BVMF:). Boeing now sees both companies aligned in the objective of developing Brazil’s aerospace ecosystem.
“This is a very logical place for us to invest,” said Boeing global president responsible for strategy and operations outside the United States, Brendan Nelson.
Brazil, said the executive, has highly trained engineers and is well positioned to lead the sector’s decarbonization efforts. “This investment is long-term,” Nelson told Reuters.
The airline industry has the ambitious goal of achieving net zero carbon emissions by 2050, an objective to which the executive reiterated that the plane manufacturer is committed. Boeing also states that Brazil has the potential to become one of the main global players in the SAF market.
The decarbonization goal largely depends on the development and increased production of SAF, which is produced from renewable resources such as vegetable oils or waste. Brazil is a global leader in biofuels such as .
The company’s new technology center in São José dos Campos, where Embraer has its headquarters, employs around 500 people, according to Boeing, whose main client is the airline Gol (BVMF:).
The aircraft manufacturer did not say how much it intends to invest in Brazil.
Boeing’s expansion in Brazil led two national groups in the aerospace and defense sector, Abimde and Aiab, to sue the North American company for hiring local talent, a move they consider harmful to the Brazilian industry itself. Both associations have Embraer as a member.
Boeing defended its move, saying its presence will boost the Brazilian aerospace ecosystem.
“We are not competing with Embraer for their market. We compete in different markets,” said Boeing Latin America and Caribbean President Landon Loomis, noting that the companies also have shared interests as members of the same industry, including sustainability and safety. .
Embraer’s commercial division is focused on regional jets, while Boeing manufactures larger aircraft.
(Reporting by Gabriel Araujo)
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