Saab is ready to set up a manufacturing centre in Brazil for the Gripen fighter to help it secure a $1.8bn deal for 36 warplanes from the Brazilian Air Force.

Saab intends to shift 50% of its Gripen fighter jet production to Brazil to beat competition and increase market share for its flagship product, Bloomberg reports.

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The 36 planes required by the air force will replace a batch of aging Mirage jets, and Brazil is expected to purchase up to 120 planes in future.

While the Brazilian Air Force has already awarded the final assembly work to Embraer, the purchase order will be awarded in August.

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