Embraer is intensifying its push to secure a foothold in the U.S. Defense market with a renewed strategy centered around the KC-390 Millennium tactical tanker-transport aircraft. The Brazilian aerospace giant has partnered with Northrop Grumman, one of the largest American defense contractors, in a bid to offer the KC-390 to the U.S. Air Force (USAF). This collaboration marks a significant escalation in Embraer’s efforts, following the conclusion of a previous initiative with L3Harris.
The agreement, announced in Melbourne, Florida, focuses on developing a version of the KC-390 equipped with an aerial refueling boom – a capability currently lacking in the standard configuration, which utilizes a hose-and-drogue system. This addition is crucial for meeting the specific requirements of the USAF and expanding the aircraft’s operational versatility.
Embraer’s previous collaboration with L3Harris, under the ‘Agile Tanker’ concept, ended in late 2024 due to diverging priorities, according to sources familiar with the matter. The focus of that effort was also on developing a refueling boom. The shift to Northrop Grumman signals a strategic realignment, leveraging the American firm’s extensive experience in system development, integration and air-to-air refueling technologies.
Bosco da Costa Junior, Chief Executive of Embraer Defense & Security, described the discussions with Northrop Grumman as being “in an early stage,” but emphasized the importance of the partnership to Embraer’s long-term strategy. Northrop Grumman’s track record with major airborne systems, including the B-2 Spirit and the E-2D Hawkeye, positions it as a valuable ally in navigating the complexities of the U.S. Defense industrial base.
A key element of Embraer’s strategy is the potential for establishing KC-390 assembly operations within the United States. Embraer has already developed site plans at multiple locations across the U.S. And is “100% committed” to investing further in the country, according to Frederico Lemos, chief commercial officer for Embraer Defense & Security. This move is designed to ensure compliance with the Buy American Act, which prioritizes domestic sourcing for federal government procurement.
Currently, the KC-390 is assembled at Embraer’s industrial hub in Gavio Peixoto, Brazil. However, a significant portion of the aircraft’s components are already sourced from U.S. Manufacturers. Embraer states that 59 U.S.-based aerospace firms contribute to the KC-390, accounting for over 50% of the total purchased materials used in each jet. These components include avionics, engines (provided by International Aero Engines), the auxiliary power unit, flight control surfaces, and the cargo handling system. Key suppliers include Collins Aerospace, L3Harris, Raytheon, and BAE Systems.
The C/KC-390 Millennium is a multi-role aircraft capable of performing a variety of missions, including in-flight refueling, troop and cargo transport, and medical evacuation. Its versatility makes it an attractive option for military operators seeking a cost-effective and adaptable platform. The aircraft’s design emphasizes survivability, a critical factor in modern conflict scenarios.
Beyond the U.S. Market, Embraer is also expanding its international presence. The company recently announced a contract for two C-390 Millennium aircraft with an unnamed customer, highlighting growing global interest in the next-generation aircraft. Embraer and Mahindra are advancing plans to establish a Maintenance, Repair, and Overhaul (MRO) facility in India, demonstrating a broader strategy of localization and partnership to serve regional markets.
The potential for a U.S. Assembly line and the partnership with Northrop Grumman represent a significant investment by Embraer in its U.S. Ambitions. The success of this strategy hinges on the USAF’s assessment of the KC-390’s capabilities and its alignment with the service’s long-term tanker requirements. The addition of a refueling boom, coupled with the aircraft’s existing versatility and the prospect of domestic production, could position the KC-390 as a competitive contender in the U.S. Market.
The timing of these developments is noteworthy, as the USAF is evaluating options for its next-generation refueller platform. Embraer’s proactive approach, including the strategic alliance with Northrop Grumman and the commitment to U.S. Assembly, underscores its determination to secure a significant share of this potentially lucrative contract.
