Spanish shipbuilder Navantia is establishing a Brazilian subsidiary to compete for future major Brazilian Navy fleet renewal contracts.

Establishment of the subsidiary will meet government defense rules for the contracting and is in line with company internationalization, Navantia said.

"As required by Brazilian law on strategic defense contracts, Navantia Brazil is a Brazilian company through which Navantia will channel its activities in this country, so that the products offered to the Ministry of Defense of Brazil have a high percentage of local manufacturing," it said.

The Spanish has approved the State Industrial Holdings Company to set up in Brazil, through Navantia, a limited liability company called Navantia Brasil Ltda. Projetos Navais. Navantia will own 90 percent of the subsidiary and Navantia Australia will own the rest.

Navantia said it has been preparing its presence in Brazil for two years, establishing a network of local industrial partners.

In other Navantia news, the company reports it has signed a partnership agreement with the naval shipyard and industrial services organization of the Peruvian Navy.

The partnership with SIMA is aimed at work to modernize the Peruvian Navy.

Other areas of possible cooperation could include support life cycle assessment of ships and systems in areas such as engineering support, maintenance, supply chain management, training and simulation.