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End of the line! Avibras sale to Australia: the future of the AV-MTC 300 and Astros 2020 at stake

Written by Rafaela Fabris
Published 01/04/2024 às 13:28
End of the line! Avibras sale to Australia: the future of the AV-MTC 300 and Astros 2020 at stake
Photo: Disclosure/Avibras

Brazilian defense company Avibras, creator of the Astros and AV-MTC 300 systems, will be sold to an Australian corporation, triggering concerns about the future of Brazil's innovation and technological sovereignty in the defense sector.

The renowned Brazilian defense company, Avibras, known for its innovation in artillery systems like Astros 2020, is about to be acquired by an Australian corporation. This decision, published by the DefesaNet Portal, emerges as a solution to Avibras' persistent financial crisis, exacerbated by the pandemic, resulting in the layoff of 400 employees in 2022.

Avibras Founded in 1961, it stood out in critical sectors such as aerospace, technology and telecommunications, especially with the Astros multiple rocket launcher, established in the 80s during conflicts in the Middle East. The commercial success of the Astros, particularly with sales to Iraq and Saudi Arabia, catapulted Avibras onto the global stage, enabling the development of advanced technologies, such as the AV-MTC 300 tactical cruise missile.

Consequences of the sale of Anvibras to Australia

The acquisition by the Australian company, authorized by the Brazilian government, raises concerns about the fate of Avibras' innovations, such as the AV-MTC 300 missile and the Astros 2020 system. With the transfer of ownership, there is a risk of loss of technical knowledge and expertise, threatening the autonomy and future development of the Brazilian defense sector.

Although there is no official confirmation from Avibras about the sale, the market speculates that the transaction could be completed soon. The scenario is one of uncertainty regarding the continuity of strategic projects and the maintenance of production in Brazil, with possible implications for the loss of jobs and technical know-how.

Astros 2020 and Avibras' AV-MTC 300 missile

AV-MTC 300

Avibras' strategic projects, such as Astros 2020 and the AV-MTC 300 missile, may face a transition similar to what occurred with Mansup, which was relocated to another national company after the sale of Odebrecht Defesa e Tecnologia to Elbit Systems.

If the sale of Avibras is completed, the AV-MTC 300 cruise missile project, whose intellectual property belongs to the Brazilian Army, could be transferred to another Brazilian company, thus maintaining continuity and technological development within the country. On the other hand, the situation of the Astros 2020 system, belonging to Avibras, will depend on the conditions negotiated in the sale and the interest of the acquiring company in continuing the investment and development of these projects in Brazil.

Despite progress, the company is facing a financial crisis

The extent of the financial crisis at Avibras, a renowned company in the defense industry, is notable, as is its eventual sale to an Australian company. This represents a significant change in the Brazilian defense scenario, indicating profound challenges in the sector and possible repercussions on the country's technological sovereignty.

It is surprising to see one andcompany that played a crucial role in the development of national defense technologies, such as the Astros system and the AV-MTC 300 missile, facing such difficulties to the point of being sold to a foreign entity. The sale of Avibras to Australia marks a critical point for Brazil's defense industry, highlighting the need for strategic assessment of the long-term consequences for the sector and national sovereignty in defense technologies.

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Rafaela Fabris

It discusses innovation, renewable energy, oil and gas. With over 1.200 articles published in CPG, it provides daily updates on opportunities in the Brazilian job market.

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