Defense industry of Brazil
The Brazilian defense industry boasts a diverse range of manufacturers producing various military equipment, firearms, ammunition, missiles, aircraft, armored vehicles, and explosives.
It generates an annual revenue of approximately R$1 billion and employs around 40,000 people, according to data from Aniam (Brazil's National Association of the Arms and Ammunition Industry).
Since 2007, Brazil has hosted LAAD, the leading defense, armament, and military equipment trade fair in Latin America, attracting visitors, buyers, and exhibitors from all continents.
There are reports that in 1762, the Casa do Trem was established in Rio de Janeiro with the purpose of repairing and maintaining weapons and equipment for existing troops at the time.
During the Paraguayan War, Brazil designed ironclads in record time, but after the costly construction of the Tamandaré battleship in 1890 and the bombardment and relocation of Rio de Janeiro arsenal’s equipment during the Naval Revolt of 1893, imports became the primary means of expanding the fleet.
However, during this period, the necessary industrial base began to emerge to add value to military items, most notably with the creation of Companhia Siderúrgica Nacional in 1941.
To counter industrial offers from Germany—including the construction of a port and a naval arsenal—the United States, which was competing for economic influence in Brazil, supported the Brazilian Navy.
Although still dependent on imported prefabricated components, this industry had already developed an experienced technical workforce and was able to meet part of the demand for cannons, ammunition, torpedoes, and electronic equipment.
The United States halted its support for Brazilian naval construction once its own production was sufficient to supply surplus ships to its allies.
After the ousting of Vargas, widespread suspicion toward all measures from his administration led to the erosion of prior achievements, significantly slowing warship construction.
This was after he participated in a Brazilian Army technical mission and helped Denmark prevent certain weapon designs from falling into Nazi hands.
[24] INA, along with CBC and the Fábrica de Itajubá (a weapons factory belonging to the Ministry of the Army, later incorporated into IMBEL in 1975), became the primary manufacturers and suppliers of firearms for military and police forces during the 1950s and 1960s.
[26] Concerns about dependence on foreign arms imports had already emerged during João Goulart’s presidency[27] and continued among military leaders and geopolitical strategists after the 1964 coup.
There was a strong interest in modernizing the Armed Forces to match the level of weaponry and equipment used by global powers, reducing reliance on external suppliers, gaining geopolitical influence in the Third World, and showcasing the competence of the ruling elite.
[17] The government invested in military research, provided credit, operated some state-owned enterprises like IMBEL and Embraer, secured a domestic market by purchasing products, and implemented protectionist policies.
[16][30] Brazil also engaged in industrial and technological cooperation with other developing nations, including Saudi Arabia, Argentina, China, Egypt, Iraq, and Libya.
The entire space program, aircraft production, and tank manufacturing were centered in São Paulo, while the naval sector was concentrated in Rio de Janeiro.
[31] A key factor in this success was Brazil’s general indifference to the political alignment of its customers, many of whom were under sanctions from the United States or multilateral organizations.
[32] However, all sales had to go through the Ministry of Foreign Affairs, which at times intervened—for instance, blocking the shipment of armored vehicles to El Salvador and Honduras, fearing it would escalate conflicts.
[14] A 1991 U.S. Congressional report noted that the Departments of State and Commerce had restricted technology transfers to Brazil’s defense sector due to concerns about proliferation.
The 1973 oil crisis increased arms purchases in the Middle East and led oil-importing countries to export weapons as a way to earn foreign currency.
[37] Meanwhile, the heightened tensions of the Cold War from 1979 to 1985 further stimulated arms demand, as the United States restricted sales to many non-aligned countries.
[41] In the armored vehicle sector, Engesa was the dominant company, with smaller contributions from Bernardini, Biselli, Novatração, Gurgel,[42] and Motopeças.
Key manufacturers included Willys (e.g., Rural), Chevrolet (e.g., Veraneio), and Volkswagen, while Engesa specialized in adapting and militarizing many of these trucks.
By this period, Petrobras was supplying fuel, the road network and industrial base were sufficiently developed, and GDP had grown significantly.
Finally, the development of tracked armored vehicles began parallel to the previous phases with the modernization of the M2 Half-track and M3 Stuart, with the main participation of Biselli and Bernardini.
