Embraer acquires majority stake in Novavayu and eyes Nagpur for C-390 assembly

Embraer bought 51% of Novavayu Aerospace for about US$5.7k. Novavayu is a newly created company formed with Mahindra & Mahindra. Embraer and Mahindra said Nagpur would host a final assembly line for the C-390 if the site is chosen.

The companies see a potential contract for 60 C-390 aircraft valued at roughly US$10b, with an initial import of 12 aircraft followed by local production of 48 units. The required national content would start at at least 40% and rise to 60%. The C-390 backlog is about US$4.6b. Embraer is also discussing a possible order of dozens of E2 jets with IndiGo worth over US$1b.