The Philippine Air Force (PAF) will buy 18 new SF260 trainer aircraft from Alenia Aermacchi, as part of the armed forces' modernisation programme.
Under the $13.1m project, Aermacchi will supply SF 260 aircraft parts to Aerotech Industries Philippines.
Aerotech will also manufacture some parts of the aircraft itself in Philippines, according to mb.com.ph.
The contract consists of an integrated logistics package comprising pilot, technical and maintenance training and after-sales support, including the provision of initial equipment and spare parts.
The project, approved by Defense Secretary Norberto Gonzales, is expected to boost the armed forces' modernisation programme as well as the country's aviation industry through the transfer of technology.