Swiss ammunition firm RUAG Ammotec and the government of Brazilian State of Pernambuco signed a protocol of intent aimed at establishing a small-calibre ammunition plant in Brazil on 15 December.
Authorisation for the plant was first granted by the Brazilian government in September.
A location for the EUR15 million (USD17 million) production line is pending a final decision. RUAG is hoping to begin production in 2018, with an initial workforce of 40.
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