Elbit Systems (Nasdaq: ESLTF) has acquired control of Brazil's Aeroelectronica Industria de Componentes
(of the Aeromot group) for $2.3 million. Elbit now holds 60% of the shares, and the Aeromot group 40%. Elbit Systems plans to turn the Brazilian company into its production center for Brazil and elsewhere.
Porto Alegre-based Aeroelectronica manufactures components for the aviation sector. The company will serve as the manufacturing and logistics support center for Elbit's advanced electronics systems in Brazil and as the manufacturing center for Elbit Systems in other countries.
Aeroelectronica will play a part in the modernization program of F-5 planes that Elbit is jointly conducting for the Brazilian Air Force with Brazilian company Embraer Aircraft Corporation. Aeroelectronica will also participate in other projects for the Brazilian army.
Zeev Gofer, co-president of Elbit's upgrade programs, said that the acquisition of Aeroelectronica is part of the company's strategy of building up long-term relationships with customers and partners in Brazil.
Gofer said Elbit Systems plans to turn Aeroelectronica, acquired together with Elbit employees, into a technology center
Modernization of Brazil's F-5 aircraft began this year, after a three-year delay, due to budget difficulties. The project is worth $230 million. Elbit Systems beat Israel Aircraft Industries (IAI) and Marconi PLC (Nasdaq: LSE: MONI) of Britain, as well as other companies, in the tender.
Elbit recently expanded its business relationship with Brazil considerably, despite the country's severe economic crisis, following the weakness of the Brazilian real. In recent years, Elbit has provided components for several key Brazilian aviation projects.
Published by Israel's Business Arena on 30 July, 2001