South Korea selects Embraer’s C-390 Millennium aircraft in first Asian order

SAO PAULO : South Korea’s Defense Acquisition Program Administration (DAPA) has selected Brazilian planemaker Embraer’s C-390 Millennium military aircraft, according to a statement from the company on Monday.

Embraer said it will supply an undisclosed number of the aircraft, which will meet specific requirements for the Korean Air Force. The order is believed to be for two to three aircraft, analysts at J.P. Morgan said in a note to clients.

The announcement sent Embraer’s share price up nearly 2 per cent by mid-day.

The value of the contract, the first Asian order of the aircraft, will be included in Embraer’s order book for the fourth quarter of 2023, the company said.

“We welcome the Republic of Korea Air Force to join the growing number of air forces operating the C-390 Millennium – the most modern military tactical transport aircraft,” said Bosco da Costa Jr, the head of Embraer’s defense and security unit.

South Korea is the seventh country to select the C-390, after Brazil, Portugal, Hungary, the Netherlands, Austria and the Czech Republic, according to Embraer.

Expanding its presence abroad with more sales of the C-390 is a key goal of Embraer’s defense division.

“The increased backlog bodes well for our expected margin improvement in the segment during the coming years,” the J.P. Morgan analysts said.