The defence ministers of Argentina and Brazil have signed a letter of intent for the joint development of KC-390 twin-engine military cargo aircraft.

Both countries will negotiate the terms and conditions under which Argentina will manufacture KC-390 components as well as Argentina’s possible acquisition of six of the aircraft.

Brazilian aircraft manufacturer Embraer will design the KC-390 aircraft, which has been described as a rival to Lockheed Martin’s C-130 transport aircraft, according to the Wall Street Journal.

Embraer has established partnerships with the governments of Chile, Colombia, Portugal and the Czech Republic to join the KC-390 programme.

In July, the Brazilian Air Force said it would acquire 28 KC-390 aircraft.