Boeing will create a research and technology center in Brazil to develop aerospace technologies.
The airplane maker has had a relationship with Brazil since 1932, when it delivered 14 F4B-4 airplanes to the country's government. Boeing's first commercial delivery to Brazil was in 1960.
The move appears to be part of a good-relations exercise ahead of Brazil's announcement, expected this summer, of its choice between Boeing, Saab and Dassault for a big jet fighter contract.
Boeing is offering its St. Louis-built F/A-18 Super Hornet in the competition. Saab of Sweden is offering its Gripen fighter; Dassault of France is offering the Rafale.
The Brazilian Air Force's initial requirement is for 36 aircraft, with the potential to eventually supply up to 120 jets.
The U.S. Navy budgets $80 million for each F/A-18 in the 2013 defense budget. But adding training and support costs for a new customer more than doubles the price. The Royal Australian Air Force bought 24 Super Hornets in 2007 for an all-in cost of $6.25 billion.
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