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The Defense Industry

Opening new markets helps exports grow 13 times

For nearly two decades, Brazilian industries depended on defense equipment exports that were limited to a few markets. It was enough that an order was cancelled to cause layoffs to bring on a crisis. In 2001, for example, the sector's exports were negligible: barely US$ 150 million.

Two initiatives by the Lula and Dilma governments were decisive in changing that scenario.  First, the opening of new markets by Brazil’s diplomats attracted the interest of the armed forces of other countries, resulting in increased exports to about US $ 2 billion (13 times the amount in 2001). Second, the Brazilian government itself has become customer of these companies emerging from the deadlocked situation of the 1990s and the early years of the 21st century.

 

Companies maintain 30,000 direct jobs and sell US$ 4 billion / year

The market for defense equipment, and military trucks, armored vehicles, aircraft, radar, flight simulators and helicopters, help energize the 190 Brazilian companies that maintain 30,000 direct jobs and 120,000 indirect jobs and sell US$ 4 billion annually, half of that in exports.

With the implementation of programs for monitoring Brazil’s sea, air and land borders, the expectation is that by 2020, the sector will generate about 48,000 direct jobs and 190,000 indirect jobs the result of planned long term investments of $ 120 billion.

Want to know more?

Get to know the Guarani armored vehicle produced in Brazil: