Fri Nov 6, 2009 6:45am EST

SAO PAULO, Nov 6 (Reuters) - Brazilian aircraft maker Embraer (EMBR3.SA)(ERJ.N) will produce its 120-seat E-190 jet in China to respond faster when the country's aviation market recovers, O Estado de S. Paulo said on Friday.

The world's largest maker of regional jets has also decided to abandon the manufacturing of the smaller 50-seat ERJ-145 jet, Estado said.

Embraer is ironing out details of the accord with its Chinese partner Avic, which recently unveiled plans to sell mid-sized jets that would compete with Embraer's aircraft, Estado reported.

Embraer has a plant in the Chinese city of Harbin, and at one point considered shutting it down, the newspaper reported. The plant only manufactures ERJ-145 jets.

Embraer's Chinese subsidiary declined comment, Estado said. A spokesman for Embraer in its headquarters of Sao Jose dos Campos, Brazil, told Reuters the company would not comment on the Estado report. The newspaper did not say how it obtained the information

Embraer's common stock fell 1.9 percent on Thursday, its third decline in four days, to 8.71 reais, its lowest level since July 30.

(Reporting by Guillermo Parra-Bernal; Editing by Derek Caney)

http://www.reuters.com/article/marketsNews/idCNN0616999920091106?rpc=44

A great move to counter the future Russian Super Jet 100...

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"Las Malvinas fueron, son y ser¨¢n Argentinas"

The E-190 looks quite good.
But the low position of the engines gives me a not so nice feeling TBH.

Chinese ARJ21-700