BAE Wins Big Brazilian Navy Contract

Britain’s BAE Systems has won its first big Brazilian naval contract that will supply the navy with three ocean patrol vessels (OPVs) which are slated to be delivered in 2012 and 2013.

The 95-foot long vessels can travel at speeds exceeding 25 knots, and will be outfitted with 30mm cannons, 25mm guns, and a helicopter flight deck.  BAE disclosed that the vessels were previously built for the government of Trinidad and Tobago in a cancelled 2007 contract. 

The three-vessel contract, valued at $172 million (£133m), will include a manufacturing license agreement under which Brazil will have the opportunity to construct additional OPVs.  The agreement doesn’t contend for BAE to construct the intended five more OPVs, though.  Under the contact, BAE will hand over their design and manufacturing instructions, where Brazil will then commission home companies to build the next portion of vessels...a controversial move among UK labor unions.  BAE, however, hopes to lend an engineering hand into the naval expansion.

Managing Director of BAE Systems, Andrew Davies, stated that the deal with Brazil is a significant step forward in their relationship with growing maritime nation, and that the OPVs are extremely capable ships that will surely be a great asset to the Brazilian navy. 

Davies added that BAE Systems, Europe’s largest defense contractor, looks forward to working with Brazil, and hopes this contract will be the start of a long-term maritime partnership.