Saab has commenced work on the $5.4bn contract awarded by the Brazilian Air Force (FAB) for the production of Gripen next generation (NG) aircraft.
Under the terms of the contract, Saab will deliver 36 Gripen NG fighters, including 28 single-seat and eight two-seat jets, as well as related systems and equipment.
The order includes deliveries of external stores by Saab and suppliers who have been selected for the Brazilian Gripen NG programme.
Recently, Brazil and Sweden signed the financing agreement for the acquisition of Gripen NG fighters.
Swedish Defence and Security Export Agency FXM agreed to fund the contract by charging an annual interest rate of 2.19% on the loan.
The first 15 aircraft under this programme will be manufactured in Brazil, whereas the remaining 21 will be jointly produced by Brazilian and Swedish engineers.
Saab is expected to deliver the first aircraft in 2019, while the deliveries are scheduled to be completed in 2024.
The Gripen NG features the same design and technology as the combat proven JAS 39 Gripen and is scheduled to initially replace FAB's Mirage 2000C fighters, followed by the F-5EM and A-1M aircraft.