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AEL Revenue is expected to grow 50% this year
New businesses in the Brazilian market of defense and security doubled the sales of the AEL System every year since 2009. Elbit Systems Subsidiary, a privately-held defense of Israel, AEL provides 50% growth in revenue in 2011 compared to 2010, when it earned U.S. $ 40 million. Considered a center of excellence in the field of avionics, AEL Systems factory in Porto Alegre (RS) is being expanded to house the contracted projects in recent months. "We are investing $ 10 million in a new building, but we have new expansions, on behalf of other businesses that are being built by the company," says Vice President of Operations, Vitor Neves.
In partnership with Embraer, the company began the upgrading an additional lot of eleven F-5, Air Force (FAB). The entire business is valued at $ 158 million and AEL was subcontracted by Embraer to a part of the project: the supply of avionics systems (electronic board) of the fighter. Another partnership with Embraer involves the modernization program of 43 fighter jets AMX FAB. Earlier this month the Senate approved $ 195 million for the AMX.
AEL has signed two important contracts with Helibras to modernize the avionics of the Squirrel helicopter, of army, and the supply these systems for the 50 EC-725, which are being produced for the Brazilian Armed Forces. "The contract with the Army includes 36 helicopters, but there is a fleet of over 300 Squirrel in operation in Brazil, with potential to receive the most advanced avionics system." The modernization of the dashboard of the Squirrel helicopter is being made by the AEL in partnership with the French company Sagem.
With Embraer, according Neves, AEL has negotiated the creation of a company that will have majority equity of aircraft manufacturer and will be dedicated to the development and production of UAVs (unmanned aerial vehicles). In April, the companies have agreed to evaluate the joint operation of the market for UAVs, flight simulators and aircraft modernization programs. "Our expectation is that by the end of July we already have a defined structure of the new company�.
The creation of the company, according to Neves, will result in a profitable partnership for both parties. "From our side we will be adapting the guidelines of the National Defense Strategy, as the new company will have majority equity for Embraer in Brazil and will be an opportunity to share expertise in a strategic area that she still does not work. "The executive believes, with Embraer, AEL will also have more strength in the acquisition process of future UAVs Armed Forces. Last year, AEL won a tender opened by the Air Force for the purchase of two UAVs, the Hermes 450 model, manufactured by Elbit. With two vehicles, FAB aims create a doctrine for the use of UAVs, since have no experience with this type of equipment.
The plan of the Ministry of Defence is the creation of a national project UAV, that meets the needs of the defense system in Brazil. AEL is building a UAV Center of Excellence in Brazil and Israel sent a group of Brazilian technicians to participate in a program for developing UAV technologies associated with the premises of Elbit. Negotiations with the Company EMBRAER, according to the executive, also include a minority of possible aircraft manufacturer in the capital of AEL. Currently, according to NEVES, AEL has 200 employees at the factory in Porto Alegre, but that number will jump to 500 within three years because of the projects developed by the company. The AEL is also responsible for modernizing the fleet of FAB 54 Bandeirante. In the area of avionics systems, AEL is the only one that has a production line of these systems in Brazil.