Brazil closes deal for SSN

From ARES

Sarko Closes Deal for SSNs, Helicopters

Posted by Robert Wall at 12/24/2008 5:12 AM CST

Brazil has now officially signed up to buy 50 EC725 medium-lift helicopters, making it the largest customer for the Eurocopter rotorcraft. At the same time, France and Brazil agreed on a deal in which Brazil will buy four DCNS Scorpene-class diesel-electric submarines - and will co-produce, with France, its first nuclear attack submarine (SSN).

The deal was signed in the presence of French president Nicolas Sarkozy - described by some rivals as France's best arms salesman - who was visiting his Brazilian counterpart Luiz Inacio Lula da Silva.

Brazil should now become the sixthnation to acquire an SSN, and, with India, the first of a new wave of SSN operators.While modern diesel-electric subs like the Scorpene are increasingly effective, they still cannot approach the speed and range of the SSN.

Meanwhile, the first EC725 for Brazil should be delivered in 2010. Eurocopter says it's the largest contract it has ever signed in South America.

Eurocopter, which has become a master at setting up local production deals to make exports happen, has teamed with Helibras, which will manufacture and assemble the helos.

Eurocopter says the deal will allow Helibras to double its production capacity and staff at its Itajuba plant.

Brazil has been good to Eurocopter, which reports a 50% market share in the civil sector, 67% of the military helo business, and 80% of the parapublic market in Brazil.

The next challenge for Sarko will be to get the Brazilians to buy the Dassault Rafale fighter, which still awaits its first export order. The Gripen NG and F/A-18E/F are also in the running for the fighter program.