The Argentine Government is considering talks with Brazil to jointly develop the KC-390 military transport plane with Embraer.
The governments of both countries plan to sign a letter of intent soon for a preliminary order, according to Reuters.
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The KC-390 plane, which is expected to begin operations in 2015, will have a cargo capacity of 23.6t.
Embraer will produce 180 KC-390 cargo planes in the first ten years of the programme and can produce a further 700 units in the same period if there is demand for the aircraft.
