The aeronautical factory , which in the past trained the technicians who would later create the Brazilian company Embraer , today survives with just 720 employees —half of its historical staff—and an accumulated debt of 70 billion pesos .
Meanwhile, the Mediterranean province is pushing to transform it into an aeronautical maintenance center with investment from the United Arab Emirates , but only if the nation assumes the liabilities and guarantees legal sustainability .
This Thursday, July 3 , a delegation from Abu Dhabi Aviation —linked to the Emirates airline group—will arrive in Córdoba to evaluate its participation in the project.
This is the second attempt in less than a year. Months ago, Arab investors abandoned the talks, frustrated by the lack of coordination between the national government and the province .
"The conditions are clear: if the nation wants us to take over, it must hand over the company with a healthy balance sheet and no inherited debt," explained a source close to Martín Llaryora's Córdoba government .
The model promoted by Córdoba would turn FADEA into a maintenance workshop for commercial and military aircraft, although specialists warn that the plan would only be viable with long-term state contracts .
Reservoir and a multi-million dollar loan
But FADEA's future is just one piece in a larger scheme of things . Córdoba is also negotiating the transfer of the Embalse nuclear power plant , a long-standing provincial dream that faces legal obstacles .
"If a power plant can be transferred to private hands, why not to a province?" official sources argue, according to media reports.
In addition, they propose a US$500 million loan from the Nation to offset part of the historical debt .
While negotiations continue, the situation at FADEA is desperate: The IA-100 Malvina prototype , the pride of the Argentine aerospace industry , remains grounded due to a lack of funds . In April , the company was only able to pay 30% of salaries , according to internal sources. Contracts with the Air Force —its main client—are being reduced year after year.
"There's been no decision on whether to sell it, close it, or recover it. Meanwhile, the factory is bleeding to death," one worker complained on condition of anonymity.
NATO interest and Arab doubts
The fight over FADEA is occurring in parallel with another strategic move : the national government is seeking to attract investments from allies such as the United States and NATO in military manufacturing .
The companies CGS Defence (Czech Republic/USA) and Hispania Group (Spain) have already inspected the Río Tercero facilities, with an interest in producing munitions for Ukraine and its allies in the war against Russia .
However, some believe that geopolitical scenario would not include FADEA . "Argentina offers no competitive advantages for the aerospace industry: no domestic market, no stability, no low costs," admitted one industry executive .
Key meeting
Everything will depend on the July 3 meeting . If the Arab investors confirm their interest, Córdoba would accept the transfer of FADEA under their conditions. If not, the provincial government will demand the Embalse plant and the loan as compensation.
Meanwhile, in the industrial warehouses of Córdoba , workers wait amidst the ghosts of a glorious past and a future that hangs in the balance of political and diplomatic threads .
"Today, Fadea is bankrupt and experiencing operational problems. Therefore, for the province to assume management and administration, it must have financial sustainability and legal certainty (contracts, balance sheets, and other issues that are still up in the air). The nation must respond to these conditions imposed by the province," said a source from the Córdoba government when questioned by national media.
War interest and geopolitical turn
In parallel with the negotiations with Córdoba , President Javier Milei's alignment with the United States, NATO and Israel could open the doors to foreign military investments .
Two companies with strong ties to NATO - CGS Defence (Czech-American owned) and the Spanish company Hispania Group - carried out inspections at the Military Manufacturing facilities during 2024 .
According to industry sources , these firms are considering reorienting production toward the manufacture of ammunition and explosives that could be used to supply Ukraine in the conflict with Russia .
Crisis at FADEA
While these strategic negotiations are taking place, the situation at FADEA is reaching critical levels. The first flight of the IA-100 Malvina , scheduled for May 9 , was indefinitely suspended due to the company's financial crisis . In April , the factory was only able to pay 30% of salaries , a fact that reflects the seriousness of its situation .
This duality —between international interest in the military sector and the abandonment of the aerospace industry —raises questions about Argentina's future industrial model .
The government insists that this process seeks to "modernize and make sustainable" the defense sector , but critics warn of the risks of losing national strategic capabilities in a volatile global context .
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