By Brazil Stock Guide – Avibras Indústria Aeroespacial SA has officially resumed operations on Thursday (30) after a four-year shutdown, marking a significant step in the restructuring of one of Brazil’s key defense manufacturers. The restart follows a complex financial overhaul involving debt renegotiation, fresh capital injection and the creation of a new corporate structure.
According to a report by Valor Econômico, the company had been inactive since entering judicial recovery proceedings in 2022, with total liabilities estimated at about 800 million reais ($160 million). Roughly 900 employees had been on strike since September of that year.
A new entity, Avibras Aeroco, has been established to consolidate the group’s assets and intellectual property, forming the operational backbone for the company’s relaunch. The firm develops and manufactures defense systems and space solutions, including missiles, rockets and specialized military vehicles.
The restart is supported by a 300 million reais capital injection led by Fundo Brasil Crédito, which has been the company’s main creditor since 2024. Part of the funding was raised through a loan involving Joesley Batista, a shareholder in JBS SA (JBSS3), although he declined to comment publicly.
Avibras is also in talks with the Brazilian government over a potential credit line to support its recovery. A key pillar of the company’s revenue outlook remains its long-standing relationship with the Brazilian Army, which maintains annual orders estimated between 200 million and 300 million reais for ammunition and components.
As part of the restructuring, the company is carrying out workforce adjustments. Around 200 employees are expected to be rehired under the new Avibras Aeroco structure, while others are being dismissed as operations transition.
In recent years, several attempts were made to sell the company, including negotiations with foreign groups such as Australia-based Defendtex, but no deal was finalized. Labor unions had opposed foreign ownership and advocated for state control of the business.
Chief Executive Officer Sami Hassuani said the new structure is focused on long-term strategic stability. “Adding consistency and strategic vision to the business is essential for the development of Avibras Aeroco, especially in a sector that requires long-term planning, trusted relationships and continuity in partnerships,” he said. “I believe in aligning technology with purpose and reinforcing the role of solutions designed to meet our clients’ operational and strategic needs.”
The company said the current global environment, marked by geopolitical uncertainty, underscores the strategic importance of its defense portfolio, which includes the Astros artillery system and ongoing development of tactical cruise and ballistic missiles.