FAB Signs Agreement for Investments in Brazil Linked to KC-390
(Source: Brazilian Air Force; issued April 03, 2019)
(Unofficial translation by Defense-Aerospace.com)
The Brazilian Air Force (FAB) on Wednesday (03/04) signed a compensation agreement linked to the KC-390 for investments in the Brazilian aerospace sector. In contact during LAAD 2019 Defense & Security, Rockwell Collins, the company responsible for components of Brazil’s new multi-mission aircraft, has committed to investing in systems development, professional training and manufacturing of equipment - mostly maintenance-related of the KC-390.

"The company works with aircraft avionics systems, and so they are empowering domestic companies to support and maintain those systems in the future. The offset contract aims to offset large investments made involving international companies. The country seeks a return to the economy of the country, so that the contract brings benefits to Brazil, "says the Chief of the Compensation Agreements Subcommittee of the Coordinating Commission of the Combat Aircraft Program (COPAC), Lieutenant-Colonel Rodrigo Antônio Silveira dos Santos.

Representing the FAB, the President of COPAC, Air Brigadier Marcio Bruno Bonotto, signed the contract with the company. The agreement also provides for an investment distributed among different regions of Brazil: the beneficiaries will be companies located in the states of São Paulo, Minas Gerais and Rio Grande do Sul.

Lieutenant-Colonel Silveira explained how offset contracts are characterized. "There are two types: direct, which aims at compensation specifically involving the product purchased, or indirect offsets, which aim at national qualification for other services not related to the specific purchase.

“Compensation can be industrial [investment in domestic industry], commercial [other transactions], and technological [promotion of technology institutes and knowledge transfer]," he explained.

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