(MENAFN- ProactiveInvestors)
Shares of () rose 1.12 percent in New York to US$31.72 after it confirmed an agreement to sell 22 aircraft to Chinese airline Tianjin Airlines a subsidiary of HNA Group for an estimated value of US$1.1 billion.
The contract includes the sale of 20 aircraft E-Jet 195 and two E-Jet 190-E2 and deliveries will begin this year.
The agreement between the Brazilian manufacturer and the Asian airline was first announced in July 2014 and it originally stipulated the sale of 40 aircraft.
Indeed the remaining 18 E-190 jets of the order will be delivered in the second stage of the agreement after Chinese approval.
The first E-Jet195 will be delivered in 2015 while the first of the 130 seat E-Jet190-E2 is scheduled for delivery in 2018. The Tianjin Airlines already runs the largest E-Jet series fleet in Asia.
The purchase of the 22 aircraft was completed a week after announced that it would shift a section of the Phenom executive jet assembly line to the United States where the jet has proven popular with customers.
The sale to Tianjin is part of a growing bilateral political and trade (the countries are members of the BRICS group: Brazil Russia India China South Africa) relationship between Brazil and China.
Indeed the two countries signed 35 cooperation agreements worth a combined US$58 billion in various areas on the same day of that the - Tianjin Airlines deal was confirmed and a day after Chinese Prime Minister Li Keqiang arrived in Brasilia to meet President Dilma Rousseff.
Transportation and industry are among the key areas of bilateral interest. China will encourage Brazil to shift to a more manufacturing based economy as the world’s most populous country’s demand for raw materials – what it typically imports from Latin America – has dropped due to weaker economic growth projections.
Among the agreements three involve company totaling at least US$7 billion.
Another highlight is a plan to develop a transcontinental railway that would link Brazil to Peru opening a direct outlet for Brazilian on the Pacific facilitating links to Asia. The first stage is a feasibility study which could begin as early as this summer.
Other agreements also provide for installation of a metallurgical complex at Maranhão; cooperation in the nuclear energy and the establishment of a new automotive group Jacarei in Sao Paulo.
In addition to these bilateral acts signed between Brazil and China provide for training in information technology the Science Without Borders program; and financing of 14 iron ore ships with a capacity of 400 tons.
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