Embraer to invest up to $70 million in new MRO facilities for commercial jets at Perot Field Alliance Airport in Fort Worth, Texas

Rhea-AI Summary

Embraer (NYSE: ERJ) has announced plans to invest up to $70 million in new maintenance, repair, and overhaul (MRO) facilities for commercial jets at Perot Field Alliance Airport in Fort Worth, Texas. The expansion will be executed in two phases, starting with operations in an existing hangar in Q2 2025, followed by the construction of a new state-of-the-art facility to be completed by 2027. This investment is expected to create approximately 250 new skilled aviation jobs in Texas and increase Embraer's capacity to serve E-Jets customers by 53% in the US.

The new Fort Worth service center will join Embraer's global network of 80 authorized centers and 12 owned service centers. The project has received approval from the Fort Worth City Council and support from local and state officials, highlighting the importance of this expansion for the region's aerospace industry and economic growth.

Positive

• Investment of up to $70 million in new MRO facilities
• Creation of approximately 250 new skilled aviation jobs in Texas
• 53% increase in capacity to serve E-Jets customers in the US
• Expansion of global MRO network, adding to 80 authorized and 12 owned service centers
• Partnership with local and state governments, indicating strong support for the project

Negative

• None.

Insights

Aerospace Industry Analyst

Embraer's $70 million investment in new MRO facilities in Fort Worth is a strategic move to capitalize on the growing E-Jets fleet in the U.S. This expansion will increase their MRO capacity by 53%, positioning them to better serve their customer base and potentially capture more market share. The creation of 250 new skilled jobs also demonstrates Embraer's commitment to the U.S. market and could lead to improved operational efficiency and customer satisfaction. This investment aligns with the trend of OEMs expanding their aftermarket services to generate stable, long-term revenue streams. For investors, this move signals Embraer's proactive approach to supporting their products and could contribute to enhanced brand loyalty and potential future sales.

Economic Development Specialist

The establishment of Embraer's new MRO facility in Fort Worth represents a significant economic boost for the region. With 250 high-quality jobs being created, this project will contribute to the local economy through increased employment and potential spillover effects. The collaboration between Embraer, local authorities and Hillwood showcases the area's ability to attract major aerospace investments. This development further solidifies North Texas as a key hub for aerospace innovation, which could attract additional investments in the future. For Embraer shareholders, this expansion into a strategic location with strong aerospace infrastructure and supportive local policies could lead to operational efficiencies and long-term growth opportunities in the U.S. market.

• A two phased plan will start with operations in an existing hangar while construction of a new state of the art facility is underway.
• Fort Worth City Council approved incentives that will create approximately 250 new skilled aviation jobs in Texas

FORT WORTH, Texas, Oct. 15, 2024 /PRNewswire/ -- Embraer (B3: EMBR3, NYSE: ERJ) today announced the expansion and investment in the United States of its maintenance, repair and overhaul (MRO) services network to support the growing fleet of E-Jets with the opening of a new Embraer owned service center at the Perot Field Alliance Airport, in Fort Worth, Texas.

In partnership with the City of Fort Worth, Denton County and the State of Texas, Embraer expects to begin operations in an existing hangar, in the beginning of the second quarter of 2025, while building a second hangar that should be concluded by 2027. With the new facilities, Embraer's capacity to serve the E-Jets customers will increase by 53% in the US. The investment will reach up to $70 million and is expected to create approximately 250 new aviation jobs in Texas.

"We are excited to receive the final approval for this important expansion of our MRO business that supports our continued investment in the US market," said Carlos Naufel, president and CEO Embraer Services & Support. "We have a long-standing relationship with the State of Texas and look forward to our partnership with Hillwood at Alliance, and the opening of this new service center will create hundreds of highly skilled jobs in a vital segment for the aviation industry."

The new Fort Worth service center will be added to the global network of Embraer which includes 80 authorized centers and 12 owned service centers around the world.

"We are excited to welcome Embraer, a global leader in aviation, to Perot Field Fort Worth Alliance Airport and North Texas," said Ross Perot, Jr, Chairman and CEO of Hillwood. "This new facility will bring 250 high-quality jobs to Fort Worth and North Texas, further strengthening our region's role as a key hub for aerospace innovation while ensuring that Embraer can efficiently support its expanding fleet of commercial jets in the U.S.  We are proud to be a part of this exciting new chapter in their growth."

"We're thrilled that Embraer has selected Fort Worth and Perot Field Fort Worth Alliance Airport for their new aircraft facility," said Robert Allen, President & CEO, Fort Worth Economic Development Partnership. "Collaborating closely with Hillwood and Embraer's team throughout the entire process, this project stands as a clear testament to Fort Worth's robust aerospace and defense sector. We're excited to see the lasting impact this will have on the industry and our community's continued growth."

"We're excited to welcome Embraer to Fort Worth, and more specifically, to the Perot Field Fort Worth Alliance Airport," said Director of Economic Development for the City of Fort Worth Robert Sturns. "As one of the largest producers of civil aircraft in the world, Embraer's new maintenance facility and 250 jobs will be an outstanding addition to our city, building upon the success of Fort Worth's well-established foundations in aerospace and aviation."

"This project is part of our growing aviation industry in Denton County, thanks in part to our longstanding partnership with Hillwood," said Denton County Judge Andy Eads. "The expansion of Embraer here will assist other aviation companies across the North Texas Region. In addition, through this deal, Denton County residents will have access to these well-paying career opportunities."

"I am thrilled to see a well-respected company like Embraer expanding in Denton County. And we so appreciate the ongoing partnership with Hillwood," said Denton County Precinct 4 Commissioner Dianne Edmondson."

Images:

https://embraer.bynder.com/share/592C7FCD-458D-4F79-857997B79EFED290/ 

About Embraer 

A global aerospace company headquartered in Brazil, Embraer has businesses in Commercial and Executive aviation, Defense and Security, and Agricultural Aviation. The company designs, develops, manufactures, and markets aircraft and systems, providing Services and Support to customers after-sales.

Since it was founded in 1969, Embraer has delivered more than 9,000 aircraft. On average, about every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 145 million passengers a year.

Embraer is the leading manufacturer of commercial jets with up to 150 seats and the main exporter of high value-added goods in Brazil. The company maintains industrial units, offices, service, and parts distribution centres, among other activities, across the Americas, Africa, Asia, and Europe.

View original content:https://www.prnewswire.com/news-releases/embraer-to-invest-up-to-70-million-in-new-mro-facilities-for-commercial-jets-at-perot-field-alliance-airport-in-fort-worth-texas-302277196.html

SOURCE Embraer S.A.

FAQ

What is Embraer's investment plan for its new MRO facilities in Fort Worth, Texas?

Embraer plans to invest up to $70 million in new MRO facilities for commercial jets at Perot Field Alliance Airport in Fort Worth, Texas. The investment will be made in two phases, starting with operations in an existing hangar in Q2 2025, followed by the construction of a new state-of-the-art facility to be completed by 2027.

How many new jobs will Embraer's expansion in Fort Worth, Texas create?

Embraer's expansion in Fort Worth, Texas is expected to create approximately 250 new skilled aviation jobs in the region.

By what percentage will Embraer's capacity to serve E-Jets customers increase in the US with the new facilities?

With the new facilities in Fort Worth, Texas, Embraer's capacity to serve E-Jets customers will increase by 53% in the United States.

When is Embraer (ERJ) expected to begin operations in the existing hangar at Perot Field Alliance Airport?

Embraer (ERJ) is expected to begin operations in the existing hangar at Perot Field Alliance Airport in the beginning of the second quarter of 2025.