Brazilian aircraft maker Embraer unveiled a new subsidiary to focus solely on the defence and security industry, in a further move beyond from its core civil aviation business.
The company said in a statement its new Embraer Defense and Security unit will be headed by Chief Financial Officer Luiz Carlos Aguiar.
“Brazil has a growing relevant role on the global geopolitical scenario and has established a long-term vision for strengthening its defense industry,” Embraer Chief Executive Frederico Curado said in a statement, reports Reuters.
In the first nine months of 2010 the company generated 13 percent of its revenue from the defence segment and 57.7 percent from commercial aircraft.
Defense and security sales in 2011 should reach at least 1.5 billion reais (US$875.1 million), Embraer said in the statement. The company forecasts defense sales of US$650 million in 2010.
Embraer shares dropped 0.5 percent to 12.21 reais in mid-day trade in Sao Paulo, compared with a 0.25 percent gain in the benchmark Bovespa .