Brazil to Create 2000 Direct Jobs Building Submarines

French submarine Scorpène The Navy of Brazil is celebrating the signing of a cooperation agreement between Brazil and France. The Brazilian military believes that transfer of French technology, for the construction of five submarines in Brazil, should benefit the Brazilian industry and generate new jobs, as well as contributing for the country to make true its program of development of marine forces.

Through a press statement, the Brazilian navy said that the agreement forecasts the transfer of technology necessary not just for the military designers, but also for the several companies that are going to participate in the construction of conventional submarines and of the first Brazilian nuclear submarine.

According to the Brazilian Navy, many national products should be used in the submarines. "Up to now, there are already over 30 national companies involved, which should contribute with over 36,000 items, including complex systems," according to the press statement.

Apart from that, a shipyard will be built in Itaguaí­, in the metropolitan region of Rio de Janeiro, to build the nuclear submarine. The site should also serve for the production of conventional submarines and should include a naval base for support of these vessels. According to the government of Rio de Janeiro, the works should be developed by Odebrecht and by Sepetiba Consortium.

Still according to the Brazilian Navy, the entire production process of the submarines and of the shipyards should generate over 2,000 direct jobs and around 6,000 indirect ones.

The agreement for cooperation defines that the French help should be limited, in the long run, to the design and to the non-nuclear part of the first Brazilian nuclear submarine. According to the document, the vessel should use conventional weapons and both the nuclear reactor and the electronic systems associated to it should be developed by Brazil.

Although exempting itself from any responsibility with regard to damaged caused to third parties by the submarine or by its land support installations, the agreement forecasts the establishment of companies or consortia of private rights established by public, private or mixed-capital companies, Brazilian or French, to develop and build a submarine capable of receiving a nuclear reactor, produced according to international safety procedures.

The government of France agreed to authorize the sale, by French companies, of equipment, material and services to the Brazilian Navy or to Brazilian companies. Apart from that, the two countries should also consider the possibility of, totally or partially, exempting goods and services imported or produced for these purposes from direct or indirect taxes.

ABr

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