IAI Pursues Brazilian Market to Fulfill Future Growth Strategy

At the Latin America Aerospace and Defense show this week, Israel Aerospace Industries (IAI) ratified its global strategy for future growth around the world. Included are plans to enter the Brazilian market.According to representatives from IAI, the timing is right to invest in Brazil as the armed forces are beginning a long process of modernization. Brazilian interest in UAVs; early warning systems for land, sea, and air; and eventually space capabilities makes the country even more appealing to IAI.In pursuit of the Brazilian market, IAI signed a 50/50 joint venture agreement with the industrial and engineering company Synergy Group. Together, they will place bids on contracts with the Brazilian Air Force, Army, and Navy. Synergy already placed a bid with the Navy on April 15 for four Coast Guard cutters, and over the next three years, the company intends to invest $800 million in the construction of a new shipyard in Rio state.The Synergy Group is a significant player in the Brazilian market. The company's holdings include ownership of two shipyards in Brazil. It also owns five commercial airlines, including the carrier Avianca and a cargo operator, as well as an offshore helicopter fleet.Initially, both partners will inject a few hundred thousand dollars into the joint venture, with the potential for hundreds of millions to be invested long term.

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