Boeing, Embraer to build KC-390 military cargo jet in U.S.: newspaper

U.S. planemaker Boeing and Brazil's Embraer are in talks to set up an assembly line to build KC-390 military cargo jets in the United States, Brazilian newspaper Valor Economico reported on Monday. In July, 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. At the time, the companies also announced a deeper sales and services partnership on the new KC-390 military cargo jet through a separate defense venture that they said was likely to eventually receive a joint investment.