Result an agreement was recently found to 1

DCNS and Eurocopter, Christmas 2008 has an air of samba! Paris and Brasilia will sign this morning a series of bilateral agreements which the largest is based on the sale of arms to EUR 8.6 billion, of which 5.2 will go directly to the two companies and their subcontractors: 50 helicopters military EC725, 4 conventional submarines of the family rockfish, assistance to the development of a nuclear submarine, and construction of a naval base for these ships. And yet, armaments needs to be negotiated (Exocet SM39 missile and heavy torpedoes MU90). Similarly, the infantryman digital equipment and electronics of the battlefield could be added to the list.

Difficult negotiations

It was not simple to get this far. On a visit to Brasilia two weeks ago, Hervé Morin overview with Nelson Jobim, his Brazilian counterpart, that negotiations for helicopter skating. Force add equipment and devices, the military is pushing the Bill to 2.6 billion euros, or 1.1 billion more than the initial budget. Another concern: the level of deposit claimed by Eurocopter, abnormally high. The industrial terms of the agreement are very complex to negotiate with Hélibras, its Brazilian subsidiary. All without the commercial do back info to Paris... Angry, the French Minister then won his phone and coaxed Louis Gallois. "You have fifteen days to resolve this", he has launched. Nelson Jobim, under the pressure of Lula, did the same with his generals. Result, an agreement was recently found to 1.89 billion, including $ 1.1 billion for the French part. The first helicopters will be assembled by Hélibras, and then ultimately completely produced on-site. To do this, the Brazil plans the construction of a plant of turbines in Rio and in São Paulo and other components in the South.

The naval component of the agreement is estimated at 6.7 billion euros, of which 4.1 to DCNS, and the balance for the local civil engineering partner Odebrecht. What ensure of important workloads for Cherbourg. As well as Thales for sonar, MBDA for missiles, or Sagem for Optronics. But as for helicopters, the Assembly of the submarines will be at the Brazil. Because, unlike the United States and the Russia, Paris has not been reluctant to grant significant transfers of technology. "I want the Brazil to be an army and the army, it is the France which will modernize and will equip it", have also said President Lula to his French counterpart, at their last meeting, in February. In the eyes of Lula, the France is the only country willing to guarantee the independence of the Brazil by agreeing to share their trade secrets.

Revival of exports

For Paris, these contracts signed the renewal of arms exports. Although long ago that such a commitment had not been concluded with a country. A condition of course that the funding follow. It is the case for helicopters, via the General society, but not yet for submarines. In view of the amount involved, the crisis does not help BNP Paribas, leader of the "pool" banking, to find partners. "It is difficult but soluble," explains one French source. At the time, the implementation of contracts, i.e. their entry into force once the advance payments paid by the Brazil, could intervene this year for Eurocopter, but for DCNS probably in 2009.