Alenia North America and Boeing "continue to have discussions" about teaming to establish a stateside C-27J final assembly facility, according to Boeing Integrated Defense Systems President Jim Albaugh.

Alenia, however, is not waiting on the discussions to proceed with the construction plans. The company's U.S. CEO, Giuseppe Giordo, says he is proceeding with plans to break ground on the facility in Jacksonville, Fla., pending approval from local development authorities. "Alenia will have production in the U.S. with our without a major partner in the U.S.," Giordo says. "Obviously we prefer to have a partnership... But we don't' need Boeing to manufacture the C-27J in the United States of America."

Together with its U.S. prime, L3 Communications, Alenia and Boeing won the U.S. Army-led contract to build small airlifters for the Pentagon. The first Army C-27J will begin final assembly on the Jacksonville, Fla., production line in April 2010 with delivery in September of that year.

For over a year, however, Alenia and Boeing have been in talks on how to break out work share for the U.S. manufacturing with no resolution.

Last month, Alenia said talks were terminated. This week at the Farnborough Air Show, however, the companies aren't ruling out a deal in the future. The companies have a strategic partnership on work for the 787 and the 767.

In the meantime, Alenia is working to solidify arrangements with U.S. suppliers for C-27J parts.