Israel’s Elbit Systems [ELST] and Brazil’s Embraer yesterday announced the establishment of a joint company based in Brazil that will be focused on unmanned aircraft systems (UAS), avionics systems and simulators.

Harpia Sistemas S.A., as the joint venture will be named, will be 51 percent owned by Embraer’s Defesa subsidiary and 49 percent by Elbit’s Brazilian subsidiary AEL Sistemas S.A.

Harpia will also engage in contractor logistics support for the focus areas of the business.

Under the agreement, Embraer Defesa acquired a 25 percent stake in AEL.

"The creation of Harpia is in perfect alignment with Brazil’s national defense strategy and it will be an important instrument for meeting the needs of the armed and the security forces," Luiz Carlos Aguilar, president of Embraer Defesa, said in a statement." Furthermore, the potential for dual application of unmanned aerial systems and the technology generated through it must also be highlighted."

For Elbit, the deal marks another step in its growth plans in Brazil.