French Firm signs Major Submarine Deal with Brazil

On 3 September 2009, DCNS signed detailed contracts in Rio de Janeiro for the construction of four conventional-propulsion submarines for the Brazilian Navy and a vast technology transfer programme covering design assistance – under the Brazilian Navy’s design authority – with the non-nuclear portion of Brazil’s first nuclear-powered submarine and assistance with the design and construction of both a naval base and a naval shipyard.

This success follows the signing of a framework contract on 23 December 2008 under the strategic defence cooperation agreement between France and Brazil signed on the same day by Brazilian President Luiz Inácio Lula da Silva and French President Nicolas Sarkozy.

“Brazil chose DCNS to supply state-of-the-art submarines tailored to the protection and defence of the country’s 8,500-kilometre coast,” said Admiral Júlio Soares de Moura Neto, Commander in Chief of the Brazilian Navy. “These vessels will feature advanced technologies and innovations developed in recent years for French Navy programmes, particularly with regard to hydrodynamics, acoustic discretion, automation and combat systems. They will also be designed for ease of maintenance, the key to improved operational availability.”

The submarines will be built by Itaguaí Construções Navais, a joint venture set up by DCNS and Brazilian partner Odebrecht in late August. The joint venture has an initial capital of 10 million reals and will be responsible for management control. Odebrecht has a 59% interest and DCNS the remaining 41%. Through Itaguaí Construções Navais, the programme will provide employment for over 700 people in Brazil over a period of 15 years.

DCNS Chairman & CEO Patrick Boissier said: “We are proud that Brazil’s highest authorities have chosen DCNS to modernise and renew their country’s submarine fleet. I am aware of the responsibilities that this entails and have no doubt that each DCNS team will do its share to ensure the complete success of this ambitious project. The contracts signed today confirm our technological standing on the world market and the wisdom of our international strategy focusing on engineering services, new construction work, and the operation and maintenance of defence facilities.”

More specifically

• The four conventional-propulsion submarines to be built by Itaguaí Construções Navais in cooperation with DCNS which will act as design authority and prime contractor. DCNS plants and shipyards will supply a range of advanced-technology items.

• A local production and technology transfer programme will enable the Brazilian Navy and defence industry to contribute to the development and production of a range of systems and equipment.

• DCNS will provide design assistance – under the Brazilian Navy’s design authority – for the non-nuclear portion of Brazil’s first nuclear-powered submarine which will also be built by Itaguaí Construções Navais.

DCNS will provide prime contractor assistance to Odebrecht for the construction of the naval shipyard that will build the five submarines covered by today’s contracts as well as a naval base for the Brazilian Navy.

The Brazilian conventional-propulsion submarines will be designed for all types of missions from anti-surface and anti-submarine warfare to special operations and intelligence gathering. The first one is scheduled to enter active service in 2017. Shipbuilding work will begin in a few months’ time.

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