Jackson Schneider (EDS) – We are a defense company. We were born a defense company and will always be one

Note DefesaNet

Text in portuguese:

Jackson Schneider(EDS) – Nascemos, Somos e Permaneceremos uma empresa de Defesa Link

Nelson Düring
DefesaNet Chief Editor

During the LAAD Defence & Security 2015 expo, in April, DefesaNet’s chief-editor interviewed EMBRAER Defense & Security’s CEO, Jackson Schneider, who addressed critical subjects that currently affect the company’s main projects.

DefesaNet – What’s EMBRAER’s overview on LAAD 2015?

Jackson Schneider – Speaking about this expo, there is a very specific, government-wise issue concerning Brazil’ future – that is the taxing adjustment. That will demand for us to define and adjust our priorities as well.

This is already happening, in a certain way.

Our military are assessing their priorities, and perhaps some might projects have to be re-examined and discussed. Our company is fully aware of that.

Our activities consist of strategic projects, but we know that with some other works we might have to negotiate aspects such as main purposes or even redefine delivery schedules.
Still, I believe initiatives such as the KC-390 multimission cargo aircraft won’t suffer with the current scenario. At least I hope it won’t since it’s an absolutely strategic program for Brazil.

This project is moving forward according to the terms of its contract. We are completely on schedule. Therefore, I believe we won’t suffer any interference regarding this program in particular. We do have some delays on the financial schedule, but we are currently negotiating with our customer as to how we can overcome this setback. I am also very aware of our customer’s efforts in finding a solution for this program’s financial challenges. We hope not to have any negative outcomes, since our company can’t afford a project this big on its own.

But we expect to achieve a happy ending on this front.

Another strategic program we’re working on is the Border Surveillance Integrated System (SISFRON in Portuguese). This project goes beyond the monitoring apparatus itself, since its social accomplishments are obvious: gun traffic control on major cities, drug traffic control as well, surveillance over stolen vehicles, and so on. These positive byproducts come back to society and compensate many times over for the money invested on the system.

Regarding other of our company’s initiatives on aircraft modernization, we have a distinct outlook and we expect the outlines of the programs to be redefined. We still have to discuss with our customer which is the best path to follow.

However, there is one thing crystal clear at EMBRAER Defense & Security: we are a defense company. We were born a defense company and will always be one.

Regardless of temporary hardships and the current circumstances, we will remain in the defense sector, investing on it and expecting our company grows with time.

The moment our nation goes through makes us focus even more on exports. Our company is naturally aimed for markets abroad, but we will increase our attention to them.

During this edition of LAAD, we met 44 foreign delegations seriously interested in our products. The KC-390 became the main attraction. The cargo aircraft went from an object of curiosity to an actual, marketable piece, and soon we will be discussing acquisition deals.

There are many nations interested, many getting in contact with us and showing real interest in purchasing the cargo plane. And we also have the main group of nations that started out the KC-390 project. This is all very positive. It all presents a bright perspective for our product.

That is all the more reason for us to have no delays on this particular program. The KC-390 has a lot of exchange value for Brazil, and its production will provide employment for many people. This a valuable high technology product.

DefesaNet – Our team has spoken with Argentinean vice-minister Santiago Rodriquez, and he says Buenos Aires is very proud help develop the KC-390, and the country looks forward to having a bigger share on the project.

Jackson Schneider – The Argentinean Airplane Factory (Fabrica Argentina de Aviones or FAdeA) is a very active partner in this program. And they’re absolutely reliable, delivering their parts of the project on schedule and according to quality standards set by the contract. We are very pleased with the Argentinean contribution to the KC-390 initiative.

DefesaNet – Going to foreign markets depends a lot on having financial credit. Right now, how could EMBRAER Defense & Security gather the resources needed?

Jackson Schneider – We’re talking about long-term plans. In the defense field, there are no short-term deals. The financing solutions available are many. Often the nation does not need any of them, or it has its own alternatives, or it can even have a project backed up by foreign development agencies. Sometimes, a program does need aid from a bank, and the BNDES has not let us down in this regard. It has been an active partner, especially concerning exports. We are sure it will remain that way.

DefesaNet – And what about the Super Tucano?

Jackson Schneider -We have some very bright news on that front. We have sold 210 units – 190 of them have already been delivered.
At the moment we have two factories, one in Brazil (Gavião Peixoto) and another in the United States (Jacksonville). This second one focuses mainly on American purchases.

There are currently 10 selling campaigns open, and we expect to announce new deals within the next months.

DefesaNet – Is there any possibility to reach the initial dream-mark of 100 Super Tucano Units for the USA?

Jackson Schneider – We always try to keep a positive outlook, but we don’t comment on contracts. We expect both factories to have more work to do in the future.

DefesaNet – A message for the home front.

Jackson Schneider – We are absolutely confident that we will get through this difficult moment. The scenario is not good, and is disrupting our sector – especially the Defense field, since it revolves around high technology and demands extremely qualified personnel, whose professional formation is very expensive.

It is a hard blow on our sector having companies fire its employees or even having a hard time keeping themselves on the market.

As for us at EMBRAER Defense & Security, we will remain active and investing in our field.
Of course we will have to re-negotiate some contracts with our customer. We are already doing so. We believe that, due to the importance of our projects to Brazil, at least the most strategic programs will be spared.

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