Brazil – a big, elusive market with potential for Israel

Israel Aerospace Industries (IAI) is moving ahead with its plan to increase the company’s presence in the Brazilian market.

IAI’s current presence is generating interest in the local aerospace industry. In recent weeks Embraer initiated a preliminary evaluation of a co-operation programme with IAI.

An industry source confirmed that such an evaluation “is on the table”, but added it is too early to assess the results.

A Brazilian source said Embraer’s main interest is in a possible joint venture that will combine the Brazilian manufacturer’s aircraft with IAI’s systems, which would be used in mission aircraft for Elint and Comint missions “in the wide connotation”.

Other areas of interest being evaluated are fixed wing and rotorcraft upgrades, engine overhaul, conversions and satellites – mainly for communications.

In April, ELTA Systems – a subsidiary of IAI – signed an agreement of investment and co-operation with Brazilian electronic company IACIT.

The agreement, signed by ELTA’s subsidiary LARDOSA, includes the exchange of knowledge between professional teams, investment in laboratories and factories, intellectual property agreements in both directions and, especially, product support guaranteed by IACIT.

The agreement also includes training of IACIT personnel for manufacturing, installation and support of ELTA products in the Brazilian market.

The partnership’s target markets are defence and public security projects, primarily for the Brazilian market, but which may potentially extend to international markets in the future.

IAI is facing increasing competition from other Israeli companies, but mainly from American and European firms. These have also discovered the potential market in Brazil and believe it promising, despite the economic hurdles the country is encountering.

A cold war for this big market is in full swing, and  companies and  governments are doing a lot to get bigger chunks.

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