Portugal cashes in on €45 million sale to Sweden of Embraer KC-390s 

Defence minister Nuno Melo highlights “new geopolitical context”

Yesterday was a ‘big day’ for Portugal’s defence sector, in that Sweden – one of NATO’s newest members – confirmed its purchase for around €45 million of four KC-390 military transport planes, co-produced for Brazilian aeronautical company Embraer in Évora by OGMA (standing for ‘general offices of aeronautical material), and these days jointly owned by Embraer and state entity Portugal Defence.

Defence minister Nuno Melo celebrated the occasion, at Beja air base, in the company of his Swedish counterpart Pål Jonson.

The KC-390s are taking over from the ‘old fleets’ of US-made Hercules C-130s – which used to be the choice of European allies. In fact, according to Expresso, Nuno Melo flew from Montijo air base outside Lisbon to Beja in an old C-130, returning later in the day, with the Sweden defence minister, in a spanking new KC-390.

As Expresso explains, this deal sees Portugal making roughly €2 million on each one of the aircraft sold to Sweden. And this is just the beginning: Portugal has purchased 10 of these aircraft from Embraer, in order to sell them on to other countries: namely Greece, Holland and Morocco.

“The benefits to the Portuguese economy are guaranteed”, Expresso explains, “since the NATO specifications for these aircraft were developed in Portugal and by the Air Force, with Embraer, which is a shareholder in OGMA. At the very least, this acquisition (by Sweden) should be worth at least €2 million for FAP, for each aircraft.”

The visit yesterday was not only about selling, however. Nuno Melo has already made it clear that Portugal is reconsidering the original undertaking to update its US-made F-16 fleet of fighter jets with F-35s (also made in the United States). The reason he gave was the Trump administration’s unreliability as a military ally. Thus, Pål Jonson’s brief was to promote the Swedish alternatives, the Gripen – which Swedish manufacturer Saab has already sold to Brazil, with which it has also established a co-production deal.

The Brazilian Air Force has already purchased 36 Gripen (10 have been delivered so far) but the Portuguese Air Force is understood to still prefer the idea of the F-35s. As a result, Nuno Melo may decide to hold fire for now, and buy nothing – instead awaiting the next generation of fighter jets, and perhaps a different US administration.

For the time being, yesterday was a ‘very positive moment’ for the defence ministry, with Nuno Melo referring to the “new geopolitical context” that requires “ever greater joint participation” between allied countries.

“There are countless areas, in the air, on land and at sea, in which (Portugal and Sweden) can look to the future with advantage for the development of industries, creating jobs, especially in highly technological areas,” he said.

Pål Jonson referred to the fact that only 19 months ago the two countries were simply partners. Now, with Sweden’s entry into NATO, they are allies, and with the purchase of the new aircraft, they are ‘together in the KC-390 club’.

“We are looking for partnerships to advance defence industrial production,” he said, announcing that Saab has also entered into a memorandum of understanding with OGMA.

Sweden is exposed to “Russia’s illegal aggression against Ukraine”, stressed Jonson, who also warned of the Russians’ movements in the Baltic Sea and the Atlantic.

“It’s something that brought us together. We talked about protecting critical infrastructure at sea and also about our support for Ukraine,” he said.

Sweden is currently effecting “the largest rearmament of (the country) since the 1950s, because of Russia’s illegal aggression in Ukraine,” Jonson added.

Sources: Expresso/ Observador/ Lusa

Natasha Donn
Natasha Donn

Journalist for the Portugal Resident.

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