Boeing, Embraer in Talks to Set Up KC-390 Cargo Jets Assembly Line in US

Boeing and Embraer are in talks to set up an assembly line for the production of KC-390 cargo jets in the United States.

The two aircraft manufacturers announced a deal for sales and services partnership on the new KC-390 jets through a separate defense venture that they said was likely to eventually receive a joint investment in July, Reuters reported quoting Brazilian news daily Valor Economico Monday.

The two planemakers announced a deal to give Boeing an 80 percent stake in Embraer’s commercial aircraft arm, marking the biggest realignment in the global aerospace market in decades.

According to the report on Monday, which did not detail how the paper obtained the information, the two companies intend to create a defense-related joint venture to install the factory, which would be the second to produce the plane.

Such a partnership would give Boeing a newly designed, US-built tactical transport plane to sell directly against rival Lockheed Martin’s workhorse Hercules C130.