This story was originally published by Fort Worth Inc. staff | Oct. 16, 2024
The Fort Worth City Council on Tuesday approved incentives for Embraer’s new service center at Perot Field Alliance Airport in Fort Worth.
The facility to be built on 16 acres will expand Embraer’s investment and presence in the U.S. for its maintenance, repair and overhaul (MRO) services network, which will support a growing fleet of E-Jets. The Brazilian aerospace company’s investment will reach up to $70 million and create about 250 jobs, officials said.
A rendering of Embraer’s planned MRO facility at Perot Field Alliance Airport in Fort Worth. [Image: Embraer]
In partnership with the city of Fort Worth, Denton County and the state of Texas, Embraer expects to begin operations in an existing hangar, in the beginning of the second quarter of 2025, while building a second hangar that should be finished by 2027.
With the new facilities, Embraer’s capacity to serve the E-Jets customers will increase by 53% in the U.S.
“We are excited to receive the final approval for this important expansion of our MRO business that supports our continued investment in the U.S. market,” said Carlos Naufel, president and CEO of Embraer Services & Support, in a statement. “We have a longstanding relationship with the state of Texas and look forward to our partnership with Hillwood at Alliance, and the opening of this new service center will create hundreds of highly skilled jobs in a vital segment for the aviation industry.”
Ross Perot Jr., chairman of Hillwood, developer of the 27,000-acre AllianceTexas, said his company was delighted to play a role in “this exciting new chapter” of Embraer’s growth.
Embraer Aircraft Maintenance Services is a subsidiary of Embraer South America, a multinational aerospace corporation based in Brazil. Embraer South America is the largest producer of civil aircraft worldwide, after Boeing and Airbus, and the company’s American headquarters is located in Nashville.
As part of the agreement, the company is committing to a capital investment of $57 million, with $42 million in real property improvements expected by December 2026 and $15 million in business personal property by January 2027. Embraer Aircraft Maintenance Services is committing to creating 250 full-time jobs by December 2029, with an expected annual average salary of at least $67,000. Additionally, 15% of construction costs would go towards business equity firms.
In exchange, the city has agreed to enter into a seven-year tax abatement of up to 50% of the incremental value of both the company’s real and business personal property – estimated at $1.2 million.
If approved, the project is expected to generate more than $1.2 million in gross net new taxes for the city, essentially paying back the incentive in a little more than three years.
The new Fort Worth service center will be added to the global network of Embraer, which includes 80 authorized centers and 12 owned service centers around the world.
The E-Jet is a regional jet aircraft developed by Embraer. The E-Jet family consists of narrow-body twin-engine jets designed primarily for short- to medium-range flights.
“Collaborating closely with Hillwood and Embraer’s team throughout the entire process, this project stands as a clear testament to Fort Worth’s robust aerospace and defense sector,” said Robert Allen, president and CEO of the Fort Worth Economic Development Partnership. “We’re excited to see the lasting impact this will have on the industry and our community’s continued growth.”
Said Robert Sturns, the city of Fort Worth’s director of Economic Development Department: “As one of the largest producers of civil aircraft in the world, Embraer’s new maintenance facility and 250 jobs will be an outstanding addition to our city, building upon the success of Fort Worth’s well-established foundations in aerospace and aviation.”
Content retrieved from: https://fortworthinc.com/news/embraer-to-invest-70-million-in-new-facilities-at-perot-fiel/.
