Boeing, Saab, Dassault Wooing Brazil for US$ 4.5 Bi for 120 Fighter Planes

Super Hornet Jet Fighter plane Boeing Co, which is US Defense contractor, says that it  is prepared to have Brazilian companies supply a "big portion" of components for its Super Hornet jetfighter, creating as many as 5.000 local jobs, to sell 36 of the warplanes to Brazil. The pledge comes as Boeing maneuvers against competitors France's Dassault Aviation and Sweden's Saab AB.

Jim Albaugh, head of Boeing's Defense unit, said agreements have been signed with 27 Brazilian companies that are capable of producing parts for the F/A-18, including EMBRAER, the world's fourth-largest airplane maker.

"A big portion of the F-18 will be built in Brazil," said Albaugh in an interview in Brasí­lia. "For every dollar that goes toward that airplane, that money will come back to Brazil as manufacturing, software, avionics, and electronics".

Brazil, Latinamerica's biggest economy is beefing up its military after years of neglect and seeking to rebuild its arms industry. Brazilian President Luiz Inácio Lula da Silva is expected to award the contract, which analysts say could be worth as much as US$ 4.5 billion, as early as next month.

Two other contenders are also poised for the contract. Sweden Saab AB, maker of the Gripen warplane is prepared to shift as much as 50% of future Gripen production to Brazil, Bob Kemp, marketing chief for the US$ 50 million fighter plane was quoted last week by the Brazilian press.

But the toughest is France's Dassault Aviation. The Dassault Mirage 2000 is currently Brazil's most-advanced warplane. French officials have "clearly stated their openness" to cooperate with Brazil in the technology field, Yves Robins, deputy corporate communication of Dassault Aviation, said in an interview this week.

Under the tender guidelines, probably for 120 fighter planes, the company that wins the contract is required to transfer technology to Brazil equal to the full purchase price of the planes.

"Our main goal is technology access," Brazil's Defense Minister Nelson Jobim has repeatedly stated.

French Dassault has been Brazil's top arms supplier since 1978, when President Jimmy Carter banned US arms sales to Latinamerica, fearing an arms race among the reigning military juntas. The policy was reversed in 1997.

Besides French President Nicolas Sarkozy has lobbied strongly for the deal, which would be the Dassault's Rafale's first international sale. During a visit last December, Sarkozy signed contracts worth 8 billion euros to build 50 Super Cougar helicopters and five submarines.

Lula da Silva invited Sarkozy as Brazil's guest of honor at its independence day September 7. After meeting him in Paris last week, Lula da Silva said he hopes to sign new Defense accords at that time.

Mercopress

Tags:

You May Also Like

Accused of Imperialism Brazil Shows Magnanimity Towards Little Paraguay

July 25, 2009 marked the passage of a landmark piece of reform that was ...

Brazil United Against NY Times

Allies and foes of Brazilian President Luiz Inácio Lula da Silva were unanimous in ...

A Pleasing Year for Brazil’s Cosmetics Overseas. Sales Are Up 20%.

Exports by Brazil’s personal hygiene, perfumery and cosmetics industry grew 20% in 2005 and ...

Why Saudis Chose Brazil’s Embraer for Their Jets

Yesterday, Brazilian aircraft maker Embraer made its first sale of jets to an Arab ...

Brazil Finds Its Niche and Clients in International Hotel Fair

Representatives of Brazilian companies that participated in the Hotel Show, a fair of products ...

With 9% Growth Argentina’s Risk Falls and Brazil Is Left Behind

Argentina's rate risk dropped Friday below that of neighboring Brazil, a day after the ...

Awash in Dollars, Brazil Buys Back US$ 2.3 Bi in Foreign Debt Bonds

The head of Brazil’s Secretariat of the National Treasury, Joaquim Levy, reports that the ...

Brazil Deregulates Air Fares to South America

As of this Monday, September 1st, the Brazilian government will no longer regulate air ...

Brazil’s Fiocruz Opens Doors and Wallet to Foreign Postdoctoral Researchers

One of Latin America’s largest biomedical research institutes has launched a new grant program ...

Cover up and Foot Dragging by British Police on the Brazilian Murder

More evidence has emerged relating to the July 22 police killing of the young ...