Extensive Modernization Program
In 2008 the Brazilian minister of defense has formulated the "Estratégia Nacional de Defesa" (National Defense Strategy), that claims to build a strong national industry and make strategic partnerships with allied nations to develop technology together.
In 2008, Brazil has signed a strategic partnership with France and Russia to trade military technology. Brazil has also begun negotiations with France to have Brazil build 120 Rafale aircraft locally by Embraer. Also in 2008 the Brazilian company Embraer showcased the Brazilian military transport aircraft, Embraer KC-390, and some countries already have shown interest in the aircraft, with France even placing orders.
In 2009 Brazil purchased 4 Scorpène submarines for US$ 9.9 billion with a massive technology transfer agreement. In a second agreement, France will provide technical assistance to Brazil so that Brazil can design and produce indigenous nuclear powered submarines, to be completely built in Brazil.
The Brazilian government has announced that a Helibras factory in the city of Itajubá, Minas Gerais, will initially produce 50 units of the EC 725 and up to 150 new helicopters for the Brazilian military. Helibras will now also produce Eurocopter's full line of products, with the first units to be operational in 2010.
The Department of Defense of Brazil, in 2009 also asked the Brazilian Navy to develop a plan for the next 30 years. To carry out the plans of power projection that Brazil wants to run, the expenditure will cost more than US$ 138 billion, within the Navy alone. The program is called PEAMB. The strategy is to buy or build 2 aircraft carriers (40,000 tonnes), 4 LHD (20,000 tonnes), 30 escort ships, 15 submarines, 5 nuclear submarines and 62 (patrol ships).
In July 2009, the minister of defense, Nelson Jobim, said that Brazil will expend about 0.7% (US$ 13 billion) of the GDP per year to modernize the forces in addition to the 2.6% yearly defense budget. He stated, "We are raising a study to make the financial schedule of the entire project. It will be a 20 year plan, including modernization and expansion of the elements for defense of the Brazilian territory.
Read more about this topic: Brazilian Armed Forces
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