by Charles W. Thurston
Latin America Correspondent
thurstoncw@rodmanmedia.com
The strong growth recovery of Brazil’s Embraer, one of the top five small jet makers in the world, should raise demand for aviation paint and coatings, in contrast
to other segments with slow or no growth in
the economically challenged country. Embraer
sales, which are very global in distribution, rose
to $402 million during third quarter this year
from $213 million in the comparable period
last year. The Sao Jose dos Campos, Sao Paulo
state company also has a growing pipeline of
orders. This year, Embraer predicts $1.85 billion worth of global sales of 90 light jets and
40 medium jets, representing 28 percent of the
company’s total revenue. Embraer has sold a
cumulative 850 small jets in the world, 200 of
which are within Latin America.
Within Brazil, the national small jet fleet
grew by 3. 6 percent last year, Embraer calculates. Company expectations are that over the
current decade, Brazil will add 560 small business jets valued at $9.4 billion.
Embraer Executive Jets, which has a manufacturing plant in Melbourne, Florida, recently
celebrated the sale of its 300th Phenom 300.
The light jet has been “the most-delivered business jet in the world for the past two years,” the
company claims.
Further bolstering aviation expansion in
Brazil, the Air Force in April agreed to buy 36
Gripen NG aircraft for $4.6 billion including a
turnkey weapon system “with comprehensive logistic support that includes training, spare parts,
support, planning and maintenance,” a statement indicates. In addition, Brazil will partner
with Saab in Sweden for the development and
production or eight two-seater aircraft, that will
be delivered between 2019 and 2024.
In mid-2015, Embraer employees will be
trained in Sweden on maintenance and develop-
ment of the Gripen NG. This training technol-
ogy will then be transferred to Brazil through
the development of an Engineering Center to
be built at Embraer’s plant in Gavião Peixoto,
state of São Paulo, including Saab support of
the Gripen aircraft for the Air Force.
Apart from Embraer activity in aviation,
AgustaWestland do Brasil is planning to build a
new plant at Itapevi, state of Sao Paulo, that would
include a helicopter final assembly line; construction of the new facility is scheduled to be completed
in 2016. The project is being supported by Investe
São Paulo, the state investment promotion agency
within the Secretariat of Economic Development,
Science, Technology and Innovation.
Drone development in Brazil could also spur
coatings demand. An Embraer joint venture
with Israeli manufacturer Elbit resulted in the
latter’s opening of subsidiary AEL Sistemas in
Porto Alegre, state of Rio Grande do Sul. The
state cancelled a contract for drones from the
company in December 2014, purportedly for
political pressure. Drone use in Brazil still could
be spurred by a new government regulation
over the use of the products, now limited to
state security, which was used during the World
Cup in soccer and is expected to be in use for
the 2016 Olympics in Rio de Janeiro.
Within the global thermal spray coating
market, estimated to reach $12.3 billion by
2022, corrosion resistant coatings in aerospace will help spearhead demand, according
to Grand View Research. Aerospace is now the
largest segment for thermal spray, valued at
$2.6 billion last year, and increasing global government spending in civil aviation “will propel
the thermal spray coating market over the next
seven years,” the analysts opine.
Among major suppliers of aviation coatings
are AkzoNobel, PPG, Sherwin-Williams, BASF
and Henkel, which are also active in the architectural, automotive and other industrial segments of the Brazilian market. CW
According to
Embraer, within
Brazil, the
national small
jet fleet grew by
3. 6 percent and
expectations
are that over the
current decade
Brazil will add 560
small business
jets valued at $9.4
billion.
Brazil’s Embraer Raises
Aviation Coatings Demand
