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Portugal DOMESTIC DEFENSE PRODUCTION
Portugal has had a small defense industry since the
eighteenth century, consisting originally of a naval
arsenal, a
gunpowder plant, a cannon foundry, and an arms factory.
Beginning
in the mid-nineteenth century, the military's food,
supplies and,
later, fuels were provided by a government agency, the
Manutenção
Militar. At the beginning of the twentieth century, a
factory for
supplying military uniforms and equipment was established.
During
the 1960s, the defense industry expanded to meet the
specialized
requirements of the antiguerrilla operations in Africa.
However,
since the end of the fighting in 1974 and the subsequent
scaling
back of the armed forces, production capabilities have
exceeded
the country's needs. A modest level of sales abroad have
helped
the Ministry of Defense keep production lines open for
artillery,
mortar, and small arms ammunition.
Under Portuguese law, private companies were not
permitted to
engage in research, planning, testing, manufacturing or
overhaul
of equipment exclusively intended for military purposes.
These
laws have been interpreted to restrict to government-owned
enterprises the production of bombs, missiles, torpedoes,
mines,
hand grenades, propellant powders, and other explosives.
The
construction of combat aircraft, helicopters, and warships
was
also limited to nationally owned companies, although
component
manufacture could be subcontracted to private firms.
In addition to Manutenção Militar, the principal
government
enterprises included Oficinas Gerais de Fardamento e
Equipamento
(OGFE) for production of uniforms and equipment; Oficinas
Gerais
de Material de Engenharia (OGME) for the overhaul of
military
vehicles; and Oficinas Gerais de Material Aeronautico
(OGMA) for
maintenance and repair of all aircraft, avionics, engines,
communications, and radar equipment of the Portuguese air
force.
OGMA also had maintenance contracts for United States air
force
and navy equipment and to supply parts and components to
several
European aircraft manufacturers. The main ordnance factory
was
Industrias Nacionais de Defesa E.P. (INDEP), a producer of
60mm
and 81mm mortars, artillery and mortar munitions, small
arms
ammunition, machine guns, and, under a German license, the
Heckler and Koch 7.62mm G-3 rifle used by the Portuguese
army.
Arsenal do Alfeite near the Lisbon naval base had
facilities for
building patrol craft, auxiliary ships, and corvettes, but
all of
its larger modern vessels had been constructed abroad, and
its
activities were confined to maintenance and overhaul.
Bravia, a
private company, produced a range of wheeled armored
personnel
carriers, reconnaissance vehicles, and military trucks.
According to the ACDA, Portugal's arms exports reached
a peak
of US$220 million in 1986, falling off to US$40 million in
1989.
In the latter year, arms exports accounted for only 0.3
percent
of total Portuguese exports. In 1989 the minister of
defense said
that the defense industry, employing 3,000 to 4,000
people, faced
contraction because fewer countries were in the market for
arms.
Data as of January 1993
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