Sweden’s Saab AB has signed a $5.44 billion contract to produce 36 fighter jets for the Brazilian Air Force in collaboration with aircraft manufacturer Embraer. The order is for 28 single-seater and eight two-seater Gripen NG jets, according to the Stockholm-based company. It has also agreed a contract under which it will deliver “substantial technology transfer” to Brazil’s manufacturing industry. Saab’s Gripen jets will replace the Brazilian Air Force’s fleet of Mirage 2000 fighters.
Deliveries are expected to take place from 2019 to 2024. An interim solution allowing Brazil to rent Gripen planes from Sweden is expected to be finalised before the end
of this year, according to Sofia Karlberg, a spokesman for the Swedish Defence and Security Export Agency.
A statement issued by Saab chairman Marcus Wallenberg said: “We are proud to stand side by side with Brazil in this important programme. There is already a long history of industrial co-operation between our two countries, and this historic agreement takes that partnership to a new level.”
Saab chief executive Håkan Buskhe said: “The contract with Brazil validates the Gripen as the most capable and modern fighter system on the market. It solidifies Saab’s position as a world-leading producer of fighter aircraft and strengthens our platform for growth.” He added that Embraer will have “a leading role in the programme and will undertake an extensive share of the work involved in the production and delivery of the planes.”
Björn Enarson, an analyst at Danske Bank, said that the deal with an “emerging super-power” such as Brazil has dramatically increased Saab’s opportunity to do business world-wide, “not least in South America”.
In an interesting development, a week before this contract was confirmed, Argentina’s Defence Minister announced that he was to start negotiations regarding the purchase of 24 jet fighters to be manufactured in Brazil.