GAVIAO PEIXOTO, Brazil, March 25 (Reuters) - Brazil

became the first Latin American nation to build a supersonic

fighter jet on Wednesday when it unveiled the first Gripen plane

assembled in the country.

Brazil first signed the contract for Saab's

Gripen in 2014, choosing it over Boeing's ( BA ) F-18 Super

Hornet and the Rafale, made by France's Dassault, to

replace its aging fleet of fighter jets.

The country joins Western powers such as the United States

and France, as well as major developing economies including

Russia, India and China, in building a supersonic fighter jet.

Its deal with Swedish defence group Saab included the

production of 15 of the 36 jets under contract at Brazilian

planemaker Embraer's ( EMBJ ) Gaviao Peixoto plant in Sao

Paulo state under a technology transfer agreement.

Saab said it expects to use the Brazilian production line as

an export hub, a prospect bolstered by an agreement last year

for neighboring Colombia to acquire Gripen fighters.

"This is the first time since 1937, when Saab was founded,

that a fighter aircraft is manufactured outside Sweden," said

Saab CEO Micael Johansson.

The Gripen production line underscores Brazil's growing

ambitions in military aviation, with Embraer's ( EMBJ ) C-390 Millennium

cargo jet gaining traction among European buyers.