Embraer of Brazil and Saab of Sweden will partner to provide project management if Brazil orders Saab's Gripen fighter for its F-X2 program.

F-X2 is a program to modernize Brazil's Air Force and simultaneously stimulate the country's industrial base.

The country's military recently chose the Gripen as the favored aircraft for production in Brazil under the program but no contract has yet been signed.

Embraer said that under a memorandum of understanding with Saab, it will provide overall program performance share in the production and delivery of single and two-seat versions of the Gripen for the Brazilian Air Force.

Work will in include the coordination of all development and production activities in Brazil for Saab and participation in systems development, integration, flight tests, final assembly and deliveries.

"Embraer and Saab both have a long tradition in the defense market and will now work together to provide high-quality and affordable solutions for the Brazilian Air Force and other Gripen NG customers," said Jackson Schneider, president and chief executive officer of Embraer Defense & Security. "This agreement will strengthen the ties between the defense industries of Brazil and Sweden."

"In addition to re-equipping the Brazilian Air Force, the F-X2 project is meant to stimulate Brazil´s Defense industrial base," added Lieutenant-Brigadier Juniti-Saito, Commander of the Brazilian Air Force. "This partnership between Embraer and Saab will be of great importance to Brazil because, besides participating in the development, we will be able to autonomously maintain our fleet."

Brazil and Saab are expected to complete negotiations of acquisition of the Gripen by the end of the year.