Tulsa World: Boeing pursues contract for warplane in Brazil

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Boeing pursues contract for warplane in Brazil

SALES PITCH
Jim Albaugh: Offers parts production by Brazilian companies.

By Associated Press
Published: 7/11/2009 2:25 AM
Last Modified: 7/11/2009 4:15 AM

Boeing Co. says it's prepared to have Brazilian manufacturers supply a "big portion" of components for its Super Hornet jetfighter in order to sell 36 of the warplanes to the South American nation.

The move could create as many as 5,000 jobs in Brazil.

Jim Albaugh, head of Boeing's defense unit, said agreements have been signed with 27 Brazilian companies that are capable of producing parts for the F/A-18, including Empresa Brasilieira de Aeronautica SA, the world's fourth-largest airplane maker.

Should Brazil buy the jet from Boeing, it will create opportunities for suppliers beyond defense, Albaugh said.

"A big portion of the F-18 will be built here," he told Bloomberg news Friday during an interview in Brasilia. "For every dollar that goes toward that airplane, that money will come back to Brazil as manufacturing, software, avionics, and electronics."

Brazil is beefing up its military after years of neglect and also is seeking to rebuild its arms export industry.

Chicago-based Boeing is competing in Brazil with Saab AB, the Swedish maker of the Gripen warplane, and Paris-based Dassault Aviation SA, which is pitching its Rafale.

Brazilian President Luiz Inacio Lula da Silva is expected to award a contract, which analysts say could be worth as much as $4.5 billion, as early as next month. By Associated Press

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