Embraer Defense and Security and its affiliate AEL Systems, Inc., a subsidiary of the Israeli company Elbit Systems Ltd., announce the entrance of Avibras Air and Naval Division, Inc., in the capital structure of Harpia Systems, so as to jointly develop the market for unmanned aircraft systems in Brazil.
As a result, Avibras will hold a 9% stake of the company, whereas AEL Systems will hold 40%. Embraer Defense and Security will remain the majority shareholder, with 51%.
By the agreement between the three companies, Harpia will also have the Falcão Project in its product line, which will increase national content to the partnership, so that the joint venture can apply for special tax breaks made available to defence contractors owned at least 60% by interests in Brazil. Avibras is developing the Falcão for the use of the Brazilian Air Force. It will be able to perform reconnaissance, target acquisition, directional shooting support, damage assessment, and ground and sea surveillance missions.
Embraer formed the Harpia joint venture two years ago to adapt the Hermes 450 UAS for Brazilian requirements, which includes adding a satellite data link for beyond line of sight range.
Last year, Embraer was awarded the system for the surveillance of the frontiers (SISFRON) contract by the Brazilian army, with a value up to $4 billion. In Phase 1, Embraer is charged with establishing a network of ground-based radars along the country’s remote southwestern borders. A UAS capability is planned to be added to the SISFRON programme in Phase 2, beginning next year.
While the Avibras move is aimed at Brazil’s UAS requirement, the Harpia joint venture is also clearly aimed at attracting foreign sales.
“Avibras’ participation increases domestic shareholding in Harpia Systems, which will now meet all requirements of a Strategic Defense Company, in accordance with Law 12.598,” said Luiz Carlos Aguiar, President of Embraer Defense and Security and Chairman of the Board of Directors of Harpia. “In addition, Avibras will bring additional technical competence to Harpia.”
“The synergy of the technical competences of Harpia’s three affiliates, added to the Falcão Project and its legacy of high domestic technological content, will result in a highly competitive UAS solution in Brazil and abroad,” said Sami Hassuani, President of Avibras.
“Avibras brings to the company the best in know-how that was developed independently in Brazil regarding unmanned aircraft. This makes Harpia, which already enjoyed the extensive capabilities of Embraer and AEL, a company that brings together all elements necessary for the successful development in Brazil of state-of-the-art UAS that will meet our country’s needs,” said Shlomo Erez, President of AEL Systems, Inc.
About Avibras
Founded in 1961, Avibras is a 100% domestic company, specialized in engineering, which conceptualizes, develops and manufactures products for the defense and civilian markets. Its broad defense product line includes artillery rocket systems, autonomous and guided missiles, anti-aircraft defense systems, aircraft armament systems, armored military vehicles, unmanned aircraft systems, command and control vehicles, and control and integration of complex systems.
About AEL Systems
AEL Systems is a Brazilian company headquartered in the City of Porto Alegre, State of Rio Grande do Sul, Brazil. For more than two decades it has dedicated itself to conceptualizing, developing, manufacturing, maintaining, and providing logistical support for military and civilian electronic products for use in aircraft, seacraft, and ground transport, manned and unmanned. In 2001 AEL Systems became a subsidiary of Elbit Systems, Ltd., a major private-sector Israeli defense products manufacturer, and in 2011 Embraer Defense and Security acquired a 25% shareholder stake in AEL Systems.
About Embraer Defense and Security
With more than 40 years of experience in supplying superior platforms and systems to armed forces around the world, Embraer Defense and Security has a growing presence in the global market and fulfills a strategic role in Brazil’s defense system. Embraer Defense and Security’s portfolio includes military airplanes, state-of-the art radar technologies, unmanned drones, and advanced information and communications systems, such as Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance applications (C4ISR). Embraer aircraft and military solutions are found among more than 50 armed forces in 48 countries.
Photo: Avibras Falcão
Sources: Press Release / Flight Global