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

Brazil Needs to Be Cured from Its Acute Televisitis

As always, the intentions could not have been better: the movement against media concentration ...

Firing fever hits our economy

In a global economy with companies looking closer at the bottom line jobs have ...

Arabs Are Already Buying Over 50% of Brazil’s Beef Exports

The Brazilian Beef Industry and Exporters Association (Abiec) offered, last Wednesday, June 8, a ...

Brazilian Press Steps Up Coverage of Global Warming

Newspapers from Brazil are covering climate change more frequently, according to a study published ...

Brazil’s Prison Population Almost Doubles in 8 Years. It’s World’s Highest Rate.

The situation of the Rio Interstate Police (Polinter), a police precinct that agglomerates prisoners ...

Brazil: Former Lula’s Right Hand Sacked from Congress

Former Brazilian government strongman José Dirceu, from the ruling Workers Party (PT, São Paulo) ...

For Brazil the Paraguayan-Brazilian Row Over Itaipu Is Just Political

According to Brazilian president's international affairs advisor, Marco Aurélio Garcia, differences between Brazil and ...

Brazilian Industry Grows But Timidly

Industrial production in São Paulo rose 2.95% in May, compared to April. It was ...

Falling Oil Prices and Lower Domestic Demand Cut Brazil’s Petrobras Profit 20%

The retraction in demand in the domestic market and a 55% reduction in the ...

Body Shop & a no-kosher business in the jungle

Thanks in great part to its “green” image British company Body Shop has prospered ...