Two of Brazil’s biggest firearms manufacturers have announced the formation of a partnership for the development of products and services. IMBEL and Taurus have signed a memorandum of understanding which opens the way for the development of new products, production methods and marketing so we’re likely to see the companies work closely on various military, paramilitary and police tenders and contracts.
The non-binding, non-equity memorandum was signed at IMBEL’s headquarters in Brasilia and will last for five years with the rolling option to renew it for another five at the end. Infodefensa report that a renewal of the understanding would require a “contractual additive” between the companies – perhaps formalising the partnership.
It’s unclear what, if any, impact it might have on IMBEL and SIG Sauer’s discussion of a partnership to produce the P320 in Brazil.
Here’s IMBEL’s announcement of the memorandum of understanding (machine translated):
Brasília (DF) – The Brazilian Military Material Industry (IMBEL®) – the country’s first Strategic Defense and Security Company – and TAURUS ARMAS – Strategic Defense Company with 80 years of history – signed this Monday, 1st of February 2021, a Memorandum of Understanding dealing with the establishment of a non-equity partnership for the development, industrialization and joint marketing of products and services from both companies.
IMBEL® and TAURUS added their efforts in order to strengthen and boost Brazil’s Industrial Defense and Security Base, in line with the National Defense Policy and Strategy.
The signing of the partnership took place at IMBEL® Headquarters in Brasília, DF, and was attended by the Director-President of the Brazilian Military Material Industry, General Aderico Mattioli, of the President – Global CEO – of Taurus Armas, Mr. Salesio Nuhs and Directors of both companies.
The memorandum comes as foreign companies have continued to gain a market foothold in Brazil and South America in general with Beretta, Glock, FN, IWI and Steyr making sales to the region in recent years. IMBEL and Taurus are major manufacturing concerns with Taurus exporting around the world and fulfilling large pistol contracts with Brazil’s security forces. IMBEL is a state-owned operation and since their founding in the early 1930s have come to provide the Brazilian military’s service rifles. IMBEL’s newest rifle, the FAL-inspired 5.56x45mm IA2 is due, despite delays, to begin large-scale production and enter service with the Brazilian Army.