BRAZIL EMBRAER EXPECTS TO WIN $950M CONTRACT WITH US DEFENSE DEPARTMENT

Jan. 13, 2011

New York, 11 - Brazilian aircraft manufacturer Embraer said Tuesday that it expects to be awarded by June a $950 million contract to supply the U.S. Department of Defense with 200 light fighter aircraft. Jacksonville, in Florida, will grant tax breaks of $150,000 in case Embraer is awarded the contract, on the condition that at least 50 direct and 60 indirect jobs are created. "We have been working for a few years for Embraer to come to Jacksonville," said Jerry Mallot, executive vice president of the Jacksonville Regional Chamber of Commerce. In addition to the tax breaks, Embraer has been offered a hangar at the Jacksonville international airport to assemble the Super Tucano turboprop fighters. Mallot said the tax breaks are for this project specifically, but noted that Jacksonville would be interested in offering further incentives if Embraer decided to set up there for other projects. Embraer's press office said the company's main rival in the dispute is Hawker Beechcraft. (Luciana Antonello Xavier)