Embraer, Brazil Army Reach Border Monitoring Deal

Embraer SA and the Brazilian Army have come to a deal worth 839 million reais ($404 million) that will allow the jetmaker to supply equipment to monitor Brazil's border, as part of a security program, Sisfron.

According to Reuters, Embraer will supply the Brazilian army with radar and other surveillance equipment during the initial phase of Sisfron, which includes monitoring approximately 650km of border with Paraguay and Bolivia.

Brazil's ultimate goal for the program is to expand the surveillance to nearly 17,000km of land border, dividing 10 Brazilian states and 11 neighboring countries, encompassing 27% of the nation´s territory.

Reuters reports that Brazil's booming economy has brought along an increase in drugs and illegal immigrants.

Reuters also reports that Embraer is considering building ships for the country's naval fleet.

"If we manufacturer planes, why not ships?" Luiz Carlos Aguiar, the head of Embraer's defense unit tells a Brazilian newspaper.

Click here for the full report from Reuters.