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Further Reading

Brazilian Navy - Marinha do Brasil - Modernization

In recent years, the navy procured 23 A-4 Skyhawk attack aircraft from Kuwait and bought the former French aircraft carrier Foch, renamed the Sao Paulo. Several pilots have already become carrier qualified in the US. The Navy is sending on average two officers a year for flight training. In March 2004, the navy signed an LOA for the FMS LINK 11 case to upgrade their secure communications. In a program plagued by technological and design flaws, the navy,s nuclear submarine program has swallowed about $1 billion in R&D costs. The navy claims it is still 20 years, and $500 million, away from final development and delivery of a nuclear sub. Meanwhile, the navy is in dire need of escort vessels, and is hard pressed to maintain its aging fleet. Navy command is interested in submarine rescue, diesel submarine, and UNITAS training and exercises.

Possessing one of the fastest growing defense markets in the world, Brazil has been planning to invest in renovating its navy fleet, and is expected to sign deals worth between R$4-R$6 billion. As of 2010 it was expected that the selection will be made by the end of 2011. After signing the initial contract, which is expected to occur in 2012, discussions over technology transfer. The first frigate is expected to be ready between 2018 and 2019, with the patrol vessels being delivered a year before.

The planned renovation of the navy fleet will involve eleven or twelve vessels at the first stage: six patrol vessels worth R$160-R$215 million each, and five or six Type 26 frigates that each cost R$800 million to one billion. BAE Systems submitted a detailed proposal to the Brazilian Navy for an 11-ship fleet renewal package that included Type 26 frigates, but goes beyond. In addition to having Brazil join the Global Combat Ship (Type 26/27) program at the design stage, BAE’s proposal would supply a modified Wave Class fleet tanker and a variant of BAE’s River Class Ocean Patrol Vessel that’s similar to ships being built under technology transfer in Thailand. All ships would be built in Brazil.

The final choice among the potential contractors will be between the offers from the U.K., Italy, Germany, France and Korea. The frigate offer faced competition from shipbuilders like France’s DCNS (FREMM/ Gowind), and possibly other competitors like Spain’s Navantia (F100), Royal Dutch Schelde (Sigma), and even South Korea’s Daewoo. The German-Dutch F124 air defense frigates feature stealth and advanced air defense active array radars, and use the ubiquitous American Mk-41 Vertical Launch System. A less expensive, and less capable alternative is ThyssenKrupp Marine’s popular MEKO family of ships. Schelde’s modular Sigma Class can also be built as anything from an Offshore Patrol Vessel to a full-size frigate. Russia has their own set of naval clients, China has recently begun exporting frigates, and will soon be joined by South Korea’s naval shipbuilding industry,

German Economics Minister Rainer Bruederle said 27 April 2010 that ThyssenKrupp Marine Systems AG, a unit of German steelmaker and engineering company ThyssenKrupp AG (TKA.XE), can hope for a frigate order worth billions from Brazil. "Progress is being made there. We hope that we will advance a little further," Bruederle said ahead of talks with government representative from Brazil. Brazil plans to buy three frigates for around EUR1.5 billion. A decision was expected within the coming year. ThyssenKrupp and yacht manufacturer Abu Dhabi MAR in April 2010 signed a deal to establish a 50-50 joint venture to design and build naval surface ships, such as frigates, corvettes and offshore patrol vessels.

Brazil is ThyssenKrupp's number one market in terms of sales and production location in South America. The local companies comprise a workforce of more than 18,000 employees. Our largest company is RIP - Serviços Industriais with 6.200 employees. With more than 5,300 employees, the Group is also one of Brazil's leading automotive suppliers. The biggest production company is ThyssenKrupp Metalúrgica Campo Limpo Ltda., established as a local automotive supplier back in 1954. Today, the company employs about 2,900 people. ThyssenKrupp Elevadores S.A. is Brazil's second-largest elevator company and employs about 3,000 people. The new integrated steel mill being built by ThyssenKrupp in the state of Rio de Janeiro at a cost of €5.2 billion is the biggest industrial investment in Brazil in the past ten years and is also the first major steel mill to be built in the country since the mid-1980s.

On the back of a Defence Cooperation Agreement, announced 14 September 2010 by the UK and Brazilian Governments, BAE Systems has confirmed its commitment to Brazil and its naval re-equipment programme in a move that paves the way for new industrial partnerships with Brazil. Speaking in Brazil as part of a trade mission led by Gerald Howarth, UK Minister for International Security Strategy, Dean McCumiskey, BAE Systems’ Managing Director for the West, said: “In line with today's government to government agreement we are offering an assured warship procurement package to Brazil. This is based on proven and versatile ship designs and includes an invitation to become an international partner in our new Global Combat Ship program. “If BAE Systems is selected to support Brazil’s ambitious naval re-equipment programme, the ships we develop will be built at a partner shipyard in Brazil, with maximum content sourced from the wider Brazilian industry. This will help to sustain jobs and support the development of skills and high-end technology transfer between the two countries.”

The offer, presented to Brazilian government officials, was designed to meet the objectives set out in Brazil’s National Strategy of Defence to enhance its indigenous industrial capability by enabling Brazil to develop an independent, sustainable naval shipbuilding and through-life maritime support capability. “BAE Systems has a long track record of working with the Brazilian Navy,” added Ben Palmer, Business Development Director at BAE Systems’ Surface Ships division. “Our involvement can be traced back to Brazil’s Niteroi Class frigates supplied by our legacy business VT Shipbuilding in the 1970s.”

The Global Combat Ship program will deliver a new generation of affordable multirole warships featuring a core platform, which is sufficiently open to allow tailored equipment and systems to be integrated to meet individual customer needs. The first class of ships being developed under the programme is the Type 26 variant for the UK Royal Navy, which is expected to enter service at the start of the next decade. Becoming involved at this early stage will give Brazil the opportunity to influence design development. The resulting rationalised design, build and procurement process will also reduce the cost per ship and deliver substantial through-life savings to both Brazil and the UK in training, maintenance and support.

In the near term, BAE Systems believed that its 90 meter Ocean Patrol Vessel will prove an attractive option to the Brazilian Navy. With full blue water capability, it can undertake surveillance and deterrence of oil and gas installations in Brazil’s territorial waters as well as more general maritime security and search and rescue operations. The design is based on the proven River Class vessels in use with the UK Royal Navy and uses the same core platform as the vessels BAE Systems has built for the Trinidad & Tobago Coast Guard, with systems and equipment tailored to the Brazilian Navy’s requirements. The company already has a similar technology transfer agreement in place with Bangkok Dock in Thailand, which is building one vessel of this class for the Royal Thai Navy.

Other elements of the offer include proven Logistic Support Ship and ultimately Aircraft Carrier designs, as well as support to enhance Brazil’s naval combat system using technologies gained in developing CMS-1 Combat Management System and Artisan radar for the UK Royal Navy. All of which will be backed by comprehensive through-life capability management and training of those involved in the build and operations of the ships to deliver a low risk solution, with maximise return on Brazil’s equipment investment.