SAO PAULO (Reuters) -LATAM Airlines on Monday said that it would invest $2 billion in Brazil, Latin America's largest economy, within the next two years.

The Chile-based airline said in a statement it would focus the funding on products, technologies and services for passengers and on aircraft maintenance.

LATAM said it had also signed a Memorandum of Understanding with Brazil's labor ministry over training workers in specialty skills and hiring them mainly at its Sao Carlos facility in Sao Paulo state.

In the statement, LATAM said the facility - the largest aircraft maintenance center in South America - had the potential to become "a true Brazilian aerospace hub."

The decisions were made in a meeting that CEO Roberto Alvo and other company executives held together with Brazilian President Luiz Inacio Lula da Silva and other government officials.

LATAM is in advanced talks with Brazilian planemaker Embraer to add aircraft to its fleet, the head of Brazil's state development bank BNDES said last month.