Chinese company Norinco eyes significant investment in Brazil's missile maker Avibras
Brazilian media reports that the state-owned Chinese company Norinco wants to buy shares in Avibras Aerospace, a leading Brazilian producer of heavy weapon systems, including missiles and rockets.
The state-owned Chinese company Norinco plans to purchase 49 percent of shares in the Brazilian company Avibras Aerospacial, known for producing heavy weapon systems such as missiles and rockets, reports the newspaper "Folha de Sao Paulo," citing anonymous sources.
Sources confirm information
According to the newspaper, both military and government sources confirmed that a document containing the Chinese company's proposal has been submitted to the Brazilian Ministry of Defense. The management of Avibras has not commented on the matter.
Previously, representatives of the Australian group DefendTex negotiated with the Brazilian company, which is struggling financially. However, as "Folha de Sao Paulo" reports, the Australian firm withdrew from its acquisition plans due to difficulties obtaining a loan from the Australian government.
A person familiar with these negotiations revealed that the Australians’ withdrawal was also due to the stance of the Brazilian government, which did not want to authorize the shipment of weapons to Ukraine, fighting against Russian aggression.
Sources explained that Australian investors planned to produce and sell 12-cm calibre missiles in the short term, which were widely used in the post-Soviet area, including in Ukraine.
Key supplier of missiles and rockets
Avibras remains a crucial supplier of missiles and rockets for the Brazilian army, while the state-owned Chinese corporation Norinco is one of the leading weapon manufacturers for the Chinese People’s Liberation Army. Norinco's products are also exported to African countries, among other places.
In March 2023, the portal Politico reported that Norinco had supplied assault rifles to Russia, but the White House stated that they were not intended for use on the battlefield. These transactions resulted from agreements made before the war broke out.
On Thursday, Brazilian Defense Minister Jose Mucio Monteiro informed us that a foreign company is interested in starting negotiations with Avibras, but without revealing its name, reports "Folha de Sao Paulo."
The newspaper speculates that despite the lack of a veto, Brazilian diplomacy should scrutinize the negotiations between Avibras and Norinco regarding the "geopolitical impact" of a potential transaction.
The Ministry of Defense of Brazil initially assessed that selling 49 percent of the shares while leaving the controlling stake in Brazilian hands would be less controversial than selling the entire company. It could also resolve ongoing financial problems and enable full operation of the Avibras factory, reports "Folha de Sao Paulo."
