BRAZIL: ORBITA AEROSPACE SYSTEMS: BRAZIL'S NEWEST MISSILE DEVELOPER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP04T00990R000100600001-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 27, 2016
• Document Release Date: July 23, 2013
• Sequence Number: 1
• Publication Date: May 20, 1988
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2013/11/04: CIA-RDP04T00990R000100600001-4
Central Intelligence Agency
Washington. D. C.20505
DIRECTORATE OF INTELLIGENCE
20 May 1988
BRAZIL: Orbita Aerospace Systems: Brazil's Newest Missile
Developer
Summary
The creation of the Orbita firm last year as a
new, centralized missile research and development
center suggests that Brasilia hopes to step up its
effort to enter the international missile market. The
new company, strongly backed by the federal government
and the military, will be able to utilize the
production, research, and, presumably, the computing
facilities of its parent firms, as well as their
established marketing expertise. Even so, Orbita faces
some significant hurdles, since its financial prospects
are cloudy and many of its projects are in trouble on
technical grounds.
This typescript was prepared by South America
Division, Office of African and Latin American Analysis.
Comments and queries are welcome and may be directed to the
Chief, South America Division, ALA
ALA M 88-20040
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A Newcomer With Clout
Orbita Aerospace Systems, S.A. is a new, and potentially key
part of Brazil's military-industrial establishment. With
considerable impetus from the government, the firm was created in
early 1987 to facilitate missile'research and development.
Orbita will produce prototypes which, once they are proven, will
be turned over for production to the firm's parent companies.
Engesa, the armored vehicle and munitions manufacturer, holds 40
percent of Orbita stock, while an additional 40 percent share is
controlled by Embraer, the civil and military aircraft company.
The remainder is held by several munitions firms such as Imbel,
and defense electronics firms like Parcom. Orbita is temporarily
utilizing Embraer's industrial plant in Sao Jose dos Campos, Sao
Paulo State, for its projects, and houses many of its personnel
in a building near the Embraer/Aerospace Technical Center
complex. However, the US defense attache reports that in July
Orbita will occupy two new buildings of its own.
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Orbita's leadership illustrates the web of relationships
that ties together the defense establishment, and reflects the 25X1
military's strong interest in the company. Orbita's most
important officer--its vice-president in charge of research and
development--is General Hugo Piva, the former head. of the.
Aerospace Technical Center (CTA), the Air Force's aircraft,
missile, and avionics design center. A number of active duty
military officers are on the firm's board of directors, according
to the US Embassy. Vito Antonio di Grassi, a vice-president of
Engesa and close associate of Engesa president Jose Whittaker.
Ribeiro, is the president of Orbita. Di Grassi's lieutenants are
mainly drawn from Engesa and Embraer. 25X1
Why Orbita?
We believe Brazilian officials clearly hope the
government-influenced company will serve as a focal point for
missile and rocket development. Di Grassi has told US officials
that Orbita will work in direct cooperation with CTA and the
armed forces in order to fulfill Brazil's missile requirements
into the 1990s under the ambitious military modernization
program. He also indicated that Orbita will devote growing
resources in the future toward helping CTA develop Brazil's space
launch vehicle. To that end, Orbita may have acquired some of
the high grade scientific and engineering talent CTA was losing
last year due to poor government pay, according to the US
Embassy.
We believe Engesa's strong desire to diversify its
operations also helped spur the new company's creation. Engesa
executives probably hope that Orbitals focus on missile and
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related technology will complement Engesa's existing product
lines and provide entree into a new market with both Brazilian
and Third World customers. In fact, Orbita officials have
accompanied Engesa and Embraer representatives on foreign sales
trips. General Piva, for example, travelled to the United Arab
Emirates, Iraq, and Libya in late 1987 to discuss Orbita's
projects.
Finally, we judge that the Brazilian government encouraged
the creation of Orbita to spark competition with Avibras, a
private sector firm that has built several successful, but not
highly advanced, rocket systems for the Brazilian military and
for export markets. Avibras, which produces the well known
Astros II multiple rocket launcher system, is working on the
Sonda IV sounding rocket for the Air Force and is reportedly
designing a tactical surface-to-surface missile. We believe
Brasilia hopes the creation of Orbita will prompt Avibras to be
more aggressive in venturing beyond the projects with which it
has already succeeded. Even if Avibras should falter, Brasilia
probably hopes that Orbita, more responsive to government needs,
can help meet Brasilia's goals.
Drawing Strength From Its Parents
Orbita itself is small, thus far, but its impact is
magnified, in our view, by its ability to call on the many
resources of its parent firms. For example, Engesa's general
fabrication facilities are readily available to Orbita, as is
Embraer's extensive aerodynamic research effort. Imbel is a
source of explosives technology, while electronics and avionics
expertise can also be obtained from other Orbita shareholders,
such as Control and Automation Systems Engineering, S.A.
Orbita's capabilities will also be strengthened if, as we
expect, it is able to tap into the computing power of its
parents. For example, Orbita personnel almost certainly have
access to Engesa's VAX-750 computer, which utilizes Brazilian
design software
Orbita probably also will be able to draw upon Embraer's IBM 3090
supermini computer, acquired in 1987, which has a Computer Aided
Design, Computer Assisted Manufacturing (CAD/CAM) system,
according to the US defense attache. Moreover, Orbita probably
will begin to acquire its own computer capability, looking to US
or European computers.
Orb1ta7s Agenda
Orbita is currently developing a wide range of missiles for
the Brazilian military and for possible export to Third World
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customers. The firm is pressing hardest to begin production of
the Leo-1 anti-tank missile, a project inherited from Engesa.
Man-portable and laser guided, the Leo-1 is the Brazilian copy of
Italy's MAF anti-tank missile, and is being developed jointly
with Oto-Melara of Italy. It has a planned range of 4-5
kilometers and will be mounted on light vehicles and helicopters.
Named in honor of Army Minister Leonidas, the Leo is intended for
delivery to the Brazilian Army in 1989, but its primary market
probably will be overseas, where it will face stiff competition
from Western and Soviet anti-tank weapons.
Technical problems may delay the Leo's entry into
production.
The Brazilian Army is unhappy with the
missile's progress, having given Orbita an advance payment on its
contract, and has assigned 20 Army technicians to Orbita to
assist, according to the US Embassy. Orbita officials, moreover,
believe Oto-Melara is withholding information that would help
them solve the problem because of Orbitals failure to keep
current its payments to Oto-Melara.
Orbita also inherited the former "Piranha" or MAA-1
air-to-air missile project begun by CTA and D.F. Vasconcellos in
1980, and later taken on by Engesa, as a replacement for the
Brazilian Air Force's Sidewinder missiles. Orbita calls this
missile the MOL-1. According to unconfirmed press reports, the
Air Force has contracted for 250 MOL-is, probably with an eye
toward deploying them when its new AMX attack plane enters
service next year. The US defense attache believes the MOL-1
will not meet the Air Force's needs, however; the missile has
been plagued by technical problems from the start, and probably
will be inferior to US, European, and Soviet systems when it
finally enters production. Orbita apparently has recently sought
assistance from the French firm, Avions Marcel Dassault, for the
MOL-1.
There are unconfirmed reports that Orbita is also developing
a shoulder-fired, surface-to-air missile jointly with British
Aerospace, according to the US Embassy, but little is known about
the project. The missile, known as the MSA 1.3 or MSAAV, has a
planned range of seven kilometers, and is intended for use
against light vehicles as well. Press reports indicate it is
similar to the shorter range British Javelin surface-to-air
missile, and would be used primarily by Brazil's Army.
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Orbita has strted designing a mobile surface-to-surface
missile, the TM-1.1 Originally begun by Engesa, the unguided
version of this missile is intended for area saturation in
support of infantry, with a range of 40-120 kilometers.
The missile would carry a 640 kilogram
high explosive warhead, and press reports indicate that the
launchers would be mounted on a semi-armored chassis. We judge
that the missile's development is in very preliminary stages at
this time, and could take five or more yearsr and probably would
require foreign assistance.
Outlook
While the Brazilians clearly hope the creation of Orbita
will speed the development of its missile program and open up new
export markets, Orbita faces major hurdles in the near term. The
technical difficulties it is encountering in several of its
projects could render some systems obsolete before they reach
production. Other projects are so complex that it will be years
before they can be completed. For example, Orbitals air-to-air
missile is probably only an interim solution to the Brazilian Air
Force's search for a Sidewinder replacement, and it will be
outclassed by US and European equivalents.
The other major hurdle is Orbitals ability to remain solvent
until its longterm projects are completed. The MSA and the TM-1
are probably only on the drawing boards at this point, and
prototypes are years away. Only the Leo anti-tank missile is
close to providing an early return on investment, and its sales
prospects beyond the Brazilian military are uncertain. Given the
financial difficulties of its parents, Orbita may be in for lean
times--basically living off cash advances on contracts extended
by the Brazilian government and investments by the militar
possibly from the armed forces' secret contingency fund.
IWe believe the TM-1 is the same basic design as the MB/EE-1
missile that press reports indicate Orbita has offered to the
Libyans. The MB/EE is planned as a series of missiles, some of
which would have greater range than the TM-1.
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SUBJECT: Brazil: Orbita Aerospace Systems: Brazil's Newest
Missile Developer
20 May 1988
Distribution:
External:
Original - Mr. Mark Lore, Deputy Director, Office of
Brazilian Affairs
1 - James Buchanan, Chief, South America Division
1 - Kathleen Hayden, Chief, Western Div.,
1 - Robert Pastorino, Deputy Assistant Secretary of
Defense for Inter-American Affairs, International
Security Affairs
1 - Jim Fall, Director, Office of Developing Nations
Finance
1 - Peter Field, Director of South America, Department of
Commerce
- Colonel J. R. Bremm, USAF, South America Branch
- David Beale, Director, Office of
1
1
Brazilian Affairs
1 - Kim Fitzgerald, Director, Office of Intelligence
Liaison
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Internal:
1 -
D/DCI-DDCI Executive
Staff
1 -
DDI
1 -
0/DDI,
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1 -
NIO/LA
1 -
NIC/AG
1 -
PDB Staff
1 -
C/PES
1 -
DDI/CPAS/ILS
1 -
D/ALA
2 -
ALA/PS
1 -
ALA Research Director
5 -
CPAS/IMC/CB
1 -
C/ALA/SAD
1 -
DC/ALA/SAD
1 -
C/ALA/SAD/BR
2 -
ALA/SAD/BR Files
1 -
ALA/SAD Files
25X1
DI/ALA/SA/BR/
(20 May 1988) 25X1
7
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