Brazil to buy 28 military planes from Embraer

* Brazil’s Air Force intends to buy 28 KC-390 aircraft

* Defense gaining space in Embraer sales portfolio

* Company did not disclose value of contract

SAO PAULO, July 21 (BestGrowthStock) – Brazil’s Air Force said on
Wednesday it plans to buy 28 military planes from jet maker
Embraer (ERJ.N: ) to renew its aging fleet and boost surveillance
of the nation’s strategic assets.

The air force agreed to a preliminary $1.3-billion contract
to buy a KC-390 cargo plane in April 2009. According to Embraer,
test flights for the cargo plane are scheduled to start in 2014,
with the plane entering full operations by the end of 2015.

Embraer, the world’s third largest jet maker, said cargo
capacity estimates were upgraded to 23.6 metric tonnes. The
plane will also be compatible with night vision technology, the
company said in a statement.

Neither the Air Force nor Embraer detailed terms of the
agreement, including the value of the contract at market prices
or estimated times of delivery.

For the past nine years, Brazil’s Air Force has sought
unsuccessfully to renew its aging 720-fighter jet fleet because
of the lack of a long-term strategic defense plan.

But the discovery of vast offshore oil reserves in the
Atlantic Ocean in 2007 and Venezuela’s massive military build-up
since 2005, which is seen as a threat by some sectors of the
Brazilian military, forced President Luiz Inacio Lula da Silva’s
administration to resuscitate military equipment purchases.

Embraer shares (EMBR3.SA: ) gained for a third day on
Wednesday, advancing 0.3 percent to 10.23 reais — their
highest level since April 29.

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(Reporting by Guillermo Parra-Bernal; additional reporting by
Cesar Bianconi; Editing by Derek Caney)

Brazil to buy 28 military planes from Embraer