AgustaWestland, Embraer announce helicopter joint venture

Italian defence group Finmeccanica has signed the latest in a series of partnerships with a Brazilian company with a view to establishing a helicopter manufacturing joint venture (JV) in the South American market.

Finmeccanica rotary-wing subsidiary AgustaWestland signed a memorandum of understanding (MoU) with national aerospace group Embraer with a view to creating a JV company. The agreement was announced by the two companies on 21 January.

"Brazil is an important market for AgustaWestland and we believe having an industrial presence in this country will help us to further grow our business in one of the world's fastest growing markets," said Bruno Spagnolini, CEO of AgustaWestland.

According to the statement released by the two companies, their studies show strong market potential for twin-engine medium-lift helicopters, particularly for use in offshore oil and gas production. Other sectors, such as executive transport and military, show promising potential as well, they added. The companies plan to establish the JV within a few months, they said.

Several Italian defence companies have secured Brazilian military contracts in recent years.

In 2012, Finmeccanica subsidiary Oto Melara announced intent to establish two facilities in Brazil in partnership with local industrial group Jaraguá Equipamentos Industriais (JEI).