IVECO Defence Vehicles announces that on December 18, 2009 the Brazilian Army signed a contract for the supply of 2,044 units of the base model of the new family of armoured personnel carriers (VBTP-MR). The vehicles will replace the old models Urutu used today by the Brazilian armed forces. The contract is valued at 6 billion Brazilian Reais (about EUR 2.5 billion) over 20 years and also includes logistic support. The manufacturing batch of 2,044 units is planned to start in 2012, with completion in 2030. The production of models, including engines, will take place in Brazil, where Iveco LA supported by Iveco Defence Vehicles will prepare a defence dedicated unit including Research, Sales & marketing, Production, Quality and Aftersales organization. The local supply chain will involve more than 100 direct suppliers and some hundreds of indirect suppliers. The agreement was signed at a ceremony held at the Army Headquarters in Brasilia, attended by General Enzo Martins Peri, Commander of the Brazilian Army, General Fernando Sérgio Galvão, Chief of Army Staff, the President of Iveco Latin America, Marco Mazzù and the General Manager of Iveco Defence Vehicles, Pietro Borgo. The VBTP-MR project is part of the National Defence Strategy which includes the reorganization of domestic defence to ensure that the equipment needs of the Brazilian armed forces are supported by best-in-class technology. For the Brazilian Army, the VBTP-MR project will increase the effectiveness of the land forces, increasing capacity to act in several missions where the use of this type of vehicle is suitable, with different settings (personnel carrier, reconnaissance, rescue, ambulance, etc.) to meet various operational needs.