Embraer has taken full ownership of its interior components supplier, EZ Air Interior Limited, acquiring the remaining 50 percent stake from Safran Cabin on July 1, 2026, to secure its supply chain amid a major production ramp-up.

The transaction, announced in a company press release, gives the Brazilian aerospace manufacturers complete control over the production of critical cabin elements for its E-Jets family. The agreement also includes the integration of specific Safran Cabin operations located in Jacareí, Brazil, into Embraer’s manufacturing footprint.

Consolidating the cabin supply chain

Established in 2012 in Chihuahua, Mexico, EZ Air was originally formed as a joint venture between Embraer and C&D, a company that was later absorbed into Safran Cabin. The Chihuahua facility specializes in manufacturing essential interior components, including luggage bins, galleys, lavatories, and floor panels for commercial-aircraft.

Embraer President and Chief Executive Officer Francisco Gomes Neto stated the acquisition aligns with the company’s strategy to expand operations in both the short and long term, while continuously evaluating opportunities to create value for stakeholders.

“I would like to thank Safran Cabin for this successful long-term partnership and warmly welcome the new colleagues joining Embraer. Together, we will continue to deliver excellence driven by safety, quality, efficiency and sustainability,” Gomes Neto said.

Production targets and backlog pressures

Embraer is actively working to stabilize its supply-chain to meet a record firm order backlog, which reached $32.1 billion in the first quarter of 2026. The manufacturer is targeting an annual production rate of approximately 100 E-Jet aircraft by 2027 or 2028.

Securing full ownership of EZ Air mitigates execution risks as Embraer increases the output of its E175 and E2 family aircraft. By bringing the production of critical interior components entirely in-house, the company aims to insulate its final assembly lines from external supplier delays.

AirPro News analysis

We view this acquisition as a defensive vertical integration move typical of the current aerospace manufacturing environment. With global supply chains remaining fragile, original equipment manufacturers (OEMs) are increasingly bringing critical component production in-house to prevent bottlenecks. By taking full control of EZ Air, Embraer eliminates a potential single point of failure in its E-Jet assembly line, ensuring that cabin interior shortages do not derail its ambitious delivery targets over the next two years.

Sources: Embraer

Lufthansa Technik broke ground on a new 55,000-square-meter MRO facility in Santa Maria da Feira, Portugal, on June 29, 2026. The project is expected to create up to 700 highly skilled jobs when operations begin in 2028.

Announced via a company press release, the “three-digit million-euro” investment will focus on the repair of engine parts and aircraft components. The ceremony drew high-level political and corporate attendance, with Lufthansa Group leadership explicitly linking the industrial commitment to their strategic interest in acquiring a stake in the national carrier, TAP Air Portugal.

Transitioning to a permanent MRO footprint

Lufthansa Technik Portugal was founded in 2024 and has been operating out of a temporary three-building site at the PERM business park in Santa Maria da Feira. According to reporting by Aviation Week, this interim facility achieved European Union Aviation Safety Agency (EASA) Part 145 maintenance certification earlier in 2026, enabling the transition from training to certified maintenance work.

The new permanent facility represents a major expansion of these capabilities. The Portuguese investment agency, Agência para o Investimento e Comércio Externo de Portugal (AICEP), is providing €24.75 million in economic development funds for the project, drawn from a pool of €223 million in eligible funding.

“By creating 700 highly qualified jobs and bringing cutting-edge capabilities to Portugal, this investment will reinforce the country’s position as a leading aviation and MRO hub in Europe,” said Madalena Oliveira e Silva, Chairwoman and CEO of AICEP.

The TAP Air Portugal acquisition strategy

The groundbreaking occurs as the Portuguese government revives the privatization process for TAP Air Portugal. Lufthansa Group is actively competing to acquire a minority stake in the flag carrier.

During the June 29 ceremony, Lufthansa Group CEO Carsten Spohr directly connected the MRO investment to the acquisition bid.

“This depth of commitment across industry and innovation also underpins our strong interest in TAP Air Portugal as a natural extension of the partnership with Portugal we have been building for decades,” Spohr stated, noting the country serves as Europe’s gateway to South America and Africa.

The MRO facility is part of a broader expansion by the Lufthansa Group in the country, which includes a new TravelTech and AI Hub in Northern Portugal. The company aims to create more than 1,000 direct jobs across its Portuguese businesses in the coming years to support its 353 weekly flights to Portuguese destinations.

AirPro News analysis

We view the scale and timing of the Santa Maria da Feira facility as a calculated demonstration of industrial value by the Lufthansa Group, aimed directly at Portuguese policymakers. By committing a nine-figure sum and establishing a permanent EASA Part 145 certified footprint before the TAP Air Portugal privatization concludes, Lufthansa is positioning itself not just as a financial bidder, but as an integrated aerospace partner for the Portuguese economy. The presence of Prime Minister Luís Montenegro at the groundbreaking underscores that this message is being received at the highest levels of government.

Sources: Lufthansa Technik

Metal additive manufacturing provider Velo3D is tripling its production capacity with a new 288,747-square-foot facility in Livermore, California, aiming to support the aerospace and defense sectors as they transition from prototyping to full-scale 3D-printed component production.

In a press release issued on June 30, 2026, the company detailed plans to bring the new production campus online later this year. The expansion creates one of the largest metal additive manufacturing footprints in North America, while Velo3D retains its existing Fremont, California, headquarters as a dedicated research and development hub.

Facility specifications and production scale

The Livermore site dedicates 270,000 square feet specifically to manufacturing operations. The building features 36-foot clear heights, providing nearly 10 million cubic feet of vertical volume required to house the company’s large-format additive manufacturing systems.

At launch, the facility is designed to support more than 40 large-format systems. The site infrastructure allows for future expansion to accommodate over 100 metal 3D printers. Combined with the Fremont location, Velo3D will have the capacity to support a total of 125 machines.

“We believe additive manufacturing should be accessible, scalable, and production-ready,” said Michelle Sidwell, Chief Revenue Officer at Velo3D.

Aerospace and defense market momentum

The physical expansion follows a period of revenue growth driven by defense and aerospace contractors adopting the company’s Rapid Production Solutions (RPS) and Sapphire metal 3D printers. In May 2026, Velo3D reported first-quarter revenue of $13.8 million, representing a 48 percent year-over-year increase.

Earlier in 2026, the company secured an $11.5 million multi-year production agreement with a major U.S. defense contractor. This followed a February 10, 2026, announcement that Velo3D was selected as the first qualified additive manufacturing provider for the U.S. Army Ground Vehicle Systems Center.

Financial analysts have noted the company’s alignment with domestic manufacturing initiatives. On June 25, 2026, Needham analyst Austin Bohlig initiated coverage of Velo3D with a Buy rating and a $33 price target, forecasting $65 million in revenue for 2026.

“We believe the company’s leading metal additive manufacturing platform is becoming a critical enabling technology for the reindustrialization of the U.S. aerospace and defense (A&D) industrial base,” Bohlig stated.

Market positioning and conflicting outlooks

On June 29, 2026, Velo3D was officially added to the Russell 3000 Index and the Russell Microcap Index. Chief Executive Officer Arun Jeldi indicated the inclusion is intended to broaden the company’s visibility among institutional investments.

AirPro News analysis

We observe a sharp divergence in market sentiment surrounding Velo3D’s growth trajectory. While the company is executing tangible physical expansions and securing multi-million dollar defense contracts, it faces aggressive skepticism from some market participants. The simultaneous June 25, 2026, release of Needham’s bullish forecast and a bearish short-seller report from Morpheus Research highlights this tension. Morpheus characterized the business as a “promotional grift,” contrasting starkly with the company’s reported 17.2 percent gross margin improvements and transition to full-scale production. The successful activation and utilization of the Livermore facility later in 2026 will likely serve as the primary indicator of whether the aerospace supply chain can sustain this expanded capacity.

Sources: Velo3D, Inc. / PR Newswire