INSUBCONTINENT EXCLUSIVE:
The Brazilian defense company Avibras is at a crossroads
The firm, known for its missile and rocket launcher technology, is struggling financially.The government and military want to save Avibras
from bankruptcy or foreign takeover
Avibras owes about R$600 million ($109 million) and filed for bankruptcy protection in 2022.This led to 420 job cuts, leaving 900 employees
A rescue plan is now in motion
They aim to reach R$5.48 billion ($996 million) in revenue by 2034 and employ over 6,000 people.The government is backing this plan
President Lula himself asked for a Brazilian solution
He wants the National Development Bank (BNDES) to help
The Defense Ministry is also involved in the rescue efforts.Avibras Rescue Plan: Merger and BNDES Support to Save Brazilian Defense Giant
(Photo Internet reproduction)Foreign interest in Avibras has caused concern
An Australian company considered buying it but backed out
Then, a Chinese firm made an offer
This worried Brazilian officials due to potential diplomatic and strategic issues.The Future of Avibras and AkaerAvibras and Akaer are both
Together, they employ 4,000 people
Avibras supplies the Army, while Akaer focuses on Air Force and civil aviation projects.The global defense market offers opportunities
Many countries are increasing military spending due to conflicts and tensions
This could benefit a merged Avibras-Akaer company.Some politicians have suggested nationalizing Avibras, which could cost around R$2 billion
However, the Defense Minister says the government lacks funds for this option.The preferred solution seems to be a private sector rescue
The rescue plan aims to keep Avibras under Brazilian control.Even if foreign investors join later, their stake would likely be limited to
This approach seeks to address national security concerns.As the situation unfolds, the future of Avibras hangs in the balance
