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By Pedro Pligher Aug 23, 09:27 PM

SAO PAULO — Brazil plans to invest 52.8 billion reals (U.S. $10.6 billion) for research, development and equipment acquisition efforts for its military, including nearly doubling the size of its Gripen fighter fleet and financing projects by local aircraft manufacturer Embraer for aerial refueling planes, the government announced earlier this month.
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The government intends to invest 27.8 billion reals by 2026, and an additional 25 billion reals after that period, without a specific deadline.
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For the Brazilian Air Force, the plan involves the production and acquisition of 34 F-39 Gripen fighters, which would almost double the country’s fleet. Brazil signed a $5.04 billion contract with Swedish manufacturer Saab in 2014 for the purchase of 36 Gripen fighters, for delivery by 2027. In 2022, the signatories added four more fighters to the contract.

Of the 40 now on order, Brazil has received six, with four in operation. The contract stipulated that assembly for 15 F-39E Gripens would take place at Embraer’s factory in Gavião Peixoto in the state of São Paulo. The deal also included a technology sharing agreement between Brazilian engineers and Saab. The fighter production line was inaugurated in May 2023.
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The minister also pointed to another program under PAC: the purchase of nine C-390 Millennium planes — initially known as KC-390 — produced by Embraer, along with the development of a refueling version of the model.
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Saab and the Swedish Defence Materiel Administration (FMV) have entered into an agreement regarding new functionality and adjusted delivery schedules for Gripen E and Gripen C/D. The agreement relates to the period 2023-2030 and the order value is approximately SEK 5.8 billion.

FMV and Saab have agreed to revise their existing agreement regarding development and production of Gripen E by adding new functionality, which includes changes to the electronic warfare-, communication- and reconnaissance systems, as well as changes to the delivery schedules for Gripen E and Gripen C/D.
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21. Our governments will work closer together on joint defence export opportunities. This will include working together to promote international sales of Gripen E, and the associated weapons package, and maritime and underwater technology to allies in our mutual strategic interest. We will work with our industries to identify, plan and deliver third country export opportunities for UK and Swedish businesses and seek further bilateral opportunities for reciprocal foreign direct investment.
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