Embraer Expands into U.S. Defense Market

By Gabriel Araujo

SAO PAULO (Reuters) – Embraer has hired consultancy firm Oliver Wyman to help it explore the U.S. defense market, according to the head of the Brazilian planemaker’s defense unit. The company aims to sell its C-390 military cargo aircraft in the world’s leading economy.

Expanding C-390 sales abroad is a key goal for Embraer’s defense division, which has designated the U.S. as a priority market.

The collaboration with Oliver Wyman started about a month ago, and the defense CEO Bosco da Costa Jr. stated that they are “fully engaged” in crafting a strategy to enter the U.S. market.

Costa mentioned that several consultancies were evaluated before selecting Oliver Wyman for their expertise in defense.

Oliver Wyman, a subsidiary of Marsh & McLennan, may assist Embraer in exploring merger and acquisition opportunities as a method to penetrate the U.S. market. Costa emphasized that such M&A strategies have been effective for several industries entering the U.S.

Embraer Defense already has a presence in the U.S. market with the Super Tucano light attack aircraft, produced in Jacksonville, Florida. However, securing sales for the C-390 could significantly enhance their footprint.

At an event on Thursday, Costa noted that the U.S. could benefit from having both larger strategic tankers and smaller tactical tankers like the C-390, which has already seen interest from NATO countries.

Countries such as Brazil, the Netherlands, Portugal, Hungary, Austria, the Czech Republic, and South Korea have incorporated the C-390 into their defense fleets.

“Any defense player in the world cannot be out of that market,” Costa asserted, highlighting that the C-390 contains enough American-made content to satisfy local requirements. He described the initiative to penetrate the U.S. defense market as a strategic project monitored closely by the company’s board.