Multiple deadlines have passed since Embraer early last year said its Chinese joint venture would cease to exist if it couldn’t reach an agreement with its partners to build E-Jets in Harbin. Today, Harbin Embraer Aircraft remains open, but with enough work to last it until this quarter at the latest. In fact, its backlog consists of just one more ERJ 145, expected to go to Tianjin Airlines some time this spring. Once it delivers that airplane, the factory will close unless the Chinese government intervenes.
Embraer had originally given itself until the middle of last year to reach an agreement with its Chinese partners on adapting its assembly line in Harbin to produce E190s. Any delay, it said, would result in a gap in production. After the summer passed without an announcement, it shifted the deadline to the end of last year. It seems clear now, however, that even if the sides do reach an agreement in the coming months, the plant will lay fallow while workers retrofit new tooling to build the larger E-Jets.
