U.S. planemaker Boeing Co. is considering opening a production facility in Brazil to strengthen its presence in the country and shore up relations with its clients, a company executive said.

Boeing wants to prevent its leading market position in Latin America's largest country from being chiseled away by rival Airbus, Thomas Pickering, Boeing vice president of international affairs, told the Wednesday edition of the Estado de Sao Paulo newspaper.

A local press advisor for Boeing confirmed the comments."Boeing wants to be the preferred supplier to Brazilian airlines. We're looking at new ways to improve our relationships in Brazil. Among these is producing here," Pickering was quoted as saying."We want to maintain and augment our position in Latin America," he added.

Boeing has pegged the Latin American market for new airplanes at around $88 billion over the next 20 years, according to its 2004 sector outlook.Boeing's clients in Brazil include flagship airline Varig and budget carrier Gol. Brazil's other major airline, TAM, flies Airbus jets.Estado did not say how much money Boeing might invest in Brazil.

(From Reuters, Dezembro 01, 2004)

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