Brazilian manufacturer Embraer and Japanese company Nidec have announced an agreement to establish a new joint venture, called Nidec Aerospace, which will be unveiled at the Paris Air Show. From the partnership, they will work to develop new electric propulsion systems for the aerospace industry.
«The transaction combines the complementary synergies and distinct areas of expertise of two world-class engineering companies to spearhead a new era of air mobility», Embraer said in a press release.
Nidec Aerospace will be jointly owned by Nidec, which will own 51%, and Embraer, which will own the remaining 49%. It will be headquartered in Saint Louis, Missouri, United States.
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Nidec Aerospace, the new joint venture between Embraer and Nidec
The Japanese company, which specialises in the manufacture of integral engines, will be supported by the manufacturer to design, certify, produce and market next-generation electric propulsion systems to power more efficient and sustainable commercial aircraft.
Initially, Nidec Aerospace will develop and produce a propulsion mechanism for electric vertical take-off and landing aircraft (eVTOL). Eve Air Mobility, Embraer’s subsidiary company for the development of sustainable mobility solutions, will be the launch customer for the propulsion system. The aim is to produce such solutions for other types of aircraft in the future.
«The joint venture is a natural extension of both companies’ respective and continual investments in green technologies across multiple industries to accelerate global carbon neutrality», said Michael Briggs, Senior Vice President and President of the Motion & Energy Business Unit of Nidec.
«Innovation is our future growth driver and a key pillar of our strategic plan», said Francisco Gomes Neto, President and CEO of Embraer. «That is why I am extremely excited about this strategic partnership with Nidec to develop agnostics solutions for aerospace sector», he added.
«Demand for electric propulsion systems is growing exponentially in the aerospace sector, and we are confident that Nidec and Embraer together can accelerate the development of advanced products to enable the future of sustainable aviation», concluded Gomes Neto.
However, the joint venture is still subject to antitrust reviews and must be approved by both regulatory authorities and the managements of Nidec and Embraer. Both companies expect the transaction to be completed during the second half of 2023.
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