Japan’s Nidec Corporation (TOKYO: 6594; OTC US: NJDCY) and
Brazil’s Embraer (B3: EMBR3, NYSE: ERJ) welcome the unconditional
approval from all necessary regulatory authorities for the
establishment of their joint venture, Nidec Aerospace LLC. The
transaction combines the complementary synergies and distinct areas
of expertise of two world-class engineering conglomerates to
develop Electric Propulsion Systems (EPS) for the aerospace
sector.
Vincent Braley, chief of staff for Nidec’s Motion and Drives
business in the United States, has been appointed the CEO of Nidec
Aerospace with immediate effect. Braley brings broad experience in
business development and management to his new role to lead the
joint venture’s future growth.
“This approval marks a significant milestone not only in Nidec
Motion & Energy’s joint venture with Embraer, but also in our
shared vision to advance and electrify the way the world travels,”
said Michael Briggs, Senior Vice President and President of the
Motion & Energy Business Unit at Nidec. “Now with official
clearance to proceed, the Nidec Aerospace team is poised to bring
the expertise, speed, and drive needed to accelerate sustainable
aviation on a global scale.”
“We are thrilled with the unconditional clearance. The next step
will be the integration of these two powerful operational and
engineering capabilities focused on business excellence. Together,
our extraordinary teams will be able to develop advanced solutions
to collaborate with the future of sustainable aviation,” said Dimas
Tomelin, Senior Vice President of Corporate Strategy, Digital and
Innovation, at Embraer.
Unveiled at the Paris Air Show in June, the business combination
aims to unlock new opportunities by providing an agnostic portfolio
of products and services worldwide, driven initially by the growth
of the Urban Air Mobility (UAM) industry. The UAM market is
emerging and could create a USD 1.5 trillion market by 2040,
according to Morgan Stanley Research.
The joint venture Electric Propulsion System launch customer
will be the eVTOL manufacturer Eve Air Mobility (NYSE: EVEX,
EVEXW), an independent company well-positioned to be a global
leader in the UAM segment by delivering an effective and
sustainable new mode of urban transportation. Embraer will
contribute expertise, know-how and resources pertaining to the
controller, and Nidec will provide its expertise, technological
know-how and resources pertaining to electric motors. Nidec owns a
51% share of the joint venture, and Embraer the remaining 49%.
Nidec Aerospace is expected to invest more than USD 77.7 million
by 2026 and start mass production in 2026.
Effect on Financial Performance for the Current and Next
Fiscal Year
The transaction is expected to have no significant impact on the
Company’s consolidated financial performance for this fiscal year
ending March 31, 2024. If necessary, the Company will make
additional disclosure on a timely basis in accordance with the
rules of the Tokyo Stock Exchange upon determination of further
details.
Cautionary Statement Concerning Forward-Looking
Information
This press release contains forward-looking statements regarding
the intent, belief, strategy, plans or expectations of the Nidec
Group or other parties. Such forward-looking statements are not
guarantees of future performance or events and involve risks and
uncertainties. Actual results may differ materially from those
described in such forward-looking statements as a result of various
factors, including, but not limited to, the risks to successfully
integrating the acquired business with the Nidec Group, the
anticipated benefits of the Transaction not being realized, changes
in general economic conditions, shifts in technology or user
preferences for particular technologies and changes in business and
regulatory environments. The Nidec Group does not undertake any
obligation to update the forward-looking statements contained
herein or the reasons why actual results could differ from those
projected in the forward-looking statements except as may be
required by law.
Annex 1
Overview of the joint venture
(1)
Company name
Nidec Aerospace LLC
(2)
CEO
Vincent Braley*
*Appointed by Nidec Group
(3)
Date of establishment
June 15th, 2023 (US Eastern
Time)
(4)
Main Business
Development, manufacturing and
sales of propulsion system for electric Vertical Take-Off Landing
(eVTOL)
(5)
Initial capital
12,000,000 USD (Invested by both
parties on a pro-rata basis)
(6)
Major interests and interest
ratio
Nidec Motor Corporation,
51.0%
Embraer Aircraft Holding, Inc.,
49.0%
About Nidec Corporation and Nidec Motor Corporation
Nidec Corporation is the world's leading comprehensive electric
motor manufacturer. Based in Kyoto, Japan, Nidec Corporation offers
motors ranging from micro-size to super large, as well as
application products and services in IT, automation, home
appliances, automobiles, commercial and industrial systems,
environmental, energy, and many other businesses. Nidec is composed
of approximately 340 group companies employing more than 100,000
people all over the world.
With headquarters in St. Louis, MO, Nidec Motor Corporation
(NMC) is the leading manufacturer of commercial, industrial, and
appliance motors and controls. The NMC product line features a full
line of high efficiency motors, large and small, that serve
industrial, residential, and commercial markets in applications
ranging from agriculture, water treatment, mining, oil and gas, and
power generation to pool and spa motors, air conditioning
condensers, rooftop cooling towers, and commercial refrigeration.
NMC also makes motors, controls, and switches for automotive and
commercial markets.
About Embraer
A global aerospace company headquartered in Brazil, Embraer has
businesses in Commercial and Executive aviation, Defense &
Security and Agricultural Aviation. The company designs, develops,
manufactures and markets aircraft and systems, providing Services
& Support to customers after-sales.
Since it was founded in 1969, Embraer has delivered more than
8,000 aircraft. On average, about every 10 seconds an aircraft
manufactured by Embraer takes off somewhere in the world,
transporting over 145 million passengers a year.
Embraer is the leading manufacturer of commercial jets up to 150
seats and the main exporter of high value-added goods in Brazil.
The company maintains industrial units, offices, service and parts
distribution centers, among other activities, across the Americas,
Africa, Asia and Europe.
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version on businesswire.com: https://www.businesswire.com/news/home/20231005234026/en/
Media Contact: Nidec Corporation Masahiro Nagayasu +81 75 935
6140 ir@nidec.com Media Contact: Embraer S.A. Ricardo Santos +55 12
98152 4845 ricardo.santos@embraer.com.br
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