Germany’s Diehl Defence and Brazil’s AEL Sistemas have signed a new agreement to support Brazil’s medium- and extended-range ground-based air defense programs.
The memorandum of understanding expands the companies’ cooperation on Brazil’s planned ground-based air defense modernization while reinforcing their existing work on the IRIS-T missile family for the Brazilian Air Force.
Under the agreement, Diehl will continue serving as the prime contractor for the IRIS-T SLM medium-range air defense system and the future IRIS-T SLX extended-range variant.
AEL Sistemas, meanwhile, will integrate domestic technologies, including the Brazilian Link BR2 tactical data link, and provide in-country logistical support.
Diehl CEO Helmut Rauch described Brazil as a “strategically important market” for the company in South America.
“In AEL Sistemas, we have a partner that knows and understands the requirements of the country’s armed forces,” he added.
Brazil Expands Defense Production
The Diehl-AEL agreement is the latest example of Brazil’s strategy to strengthen its domestic defense industry through partnerships that combine foreign technology with local manufacturing and engineering.
In April, UAE defense group EDGE and Spain’s Indra agreed to explore local radar production in the country, while the Brazilian Navy signed a separate agreement with EDGE to strengthen cyber defense cooperation and improve the protection of naval networks, systems, and critical infrastructure.
The initiatives build on EDGE’s growing industrial presence in Brazil following the September 2025 opening of a new headquarters and manufacturing facility for subsidiary SIATT in São José dos Campos.
The site supports research, engineering, and production of systems including the Mansup anti-ship missile, the Max 1.2 AC missile, and the SisGAAz maritime surveillance system.
