Brazil remains hopeful that Beijing will give aeronautics firm Embraer the nod to build bigger passenger planes in China, the office of Brazilian President Luiz Inacio Lula da Silva said on Friday.
Embraer currently makes a 50-seat commercial jet in China with Aviation Industries of China and wants to build a 120-seat model but has not been able to get a permit from the Chinese government.
Lula has sent Chinese authorities two letters, one at the end of last year and the other in May, pressing for the permits, an official in his office told reporters.
“The response was that it’s still being analyzed,” the official said.
Embraer’s executive vice president, Paulo Souza y Silva, was quoted in the O Estado de Sao Paulo daily on Friday as saying that the Chinese wanted to build their own larger passenger planes and saw the Brazilians as competitors.
The company issued a curt statement saying there was “no decision so far” to close the factory in China — a worst case scenario mentioned by the newspaper — and that it remained in negotiations with the -Chinese government and its associates “with a view to continuing operations.”
Embraer is the world’s No. 3 maker of commercial aircraft, after US giant Boeing and its European rival Airbus.
The Brazilian company makes 50-seat ERJ-145s at the factory in Harbin though Harbin Embraer Aircraft Industry Co, Ltd, a joint venture with Harbin Aircraft Industry Group that opened in 2003.
The Chinese government committed in 2002 to buy planes from Embraer in return for a promise by the Brazilian company to build a plant in China.
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