Kenkoa Aero Signs 60 Billion KRW Defense Contract with Embraer

Kenkoreaerospace announced on the 4th that it has signed a military transport aircraft parts supply contract worth 60.5 billion KRW with Brazil's Embraer (EMBRAER S.A.).

This contract is an additional business order following the 19.1 billion KRW supply contract signed in March this year, representing a large-scale supply contract equivalent to about 80% of last year's sales (75.9 billion KRW). The amount of this business order (41.4 billion KRW) exceeds twice the size of the previous order.

Kenkoreaerospace is the largest domestic consortium operator of Embraer for the Defense Acquisition Program Administration's second phase large transport aircraft project. The C-390 is a model produced in Brazil, and Kenkoreaerospace has secured the entire five-year production volume of structural parts for the C-390 model supplied worldwide.

Lee Min-gyu, CEO of Kenkoreaerospace, said, "This order contract is the first step signaling the start of numerous projects currently being prepared," adding, "We are discussing multifaceted business cooperation with Embraer in various business areas, and the outlook is very bright."

Kenkoreaerospace aims to achieve the largest-ever defense export performance this year. Currently, Kenkoreaerospace is discussing additional orders with Embraer beyond military aircraft to the commercial aircraft sector. Furthermore, as global defense demand continues to increase, it is expected that K-defense will benefit from this trend, and Kenkoreaerospace's defense business is anticipated to gain more momentum. The United States, the world's largest defense market, plans to increase its defense-related budget from 880 billion USD this year to 1.058 trillion USD by 2033.

The CEO added, "In addition to Embraer, we are actively exploring business opportunities with Taiwan's AIDC and China's SACC, and we are also discussing several new projects with KAI, Korea's leading aerospace company," and said, "Kenkoreaerospace is laying the foundation for a quantum leap by securing new business orders this year and expanding domestic and overseas production facilities through investments exceeding 50 billion KRW, which will enable growth to level up starting next year."