The Brazilian defense company Avibras, known for its missile and rocket launcher technology, is facing financial difficulties with debts of R$600 million. To prevent bankruptcy or foreign takeover, the government and military are working on a rescue plan that involves merging Avibras with Akaer, aiming to create Brazil’s largest defense company with ambitious revenue and employment targets by 2034.
President Lula and the Defense Ministry support the plan, seeking assistance from the National Development Bank (BNDES) for funding. Foreign interest in Avibras has raised concerns, with an Australian company and a Chinese firm showing interest.
The Future of Avibras and Akaer
The merger of Avibras and Akaer, both based in São José dos Campos and employing 4,000 people, holds promise in the global defense market. While some suggest nationalizing Avibras, the preferred solution is a private sector rescue supported by the government to maintain Brazilian ownership.
The outcome of this rescue plan will shape Brazil’s defense industry and thousands of jobs, posing a complex challenge that demands careful navigation for all stakeholders.
[ad_2]
Source link
