11th Nov 2014 18:10
LONDON (Alliance News) - Rolls-Royce Holdings PLC Tuesday said it has signed a new, long-term contract worth more than USD50 million for M250 turboprop engines with Jiangsu A-Star, as the Chinese company prepares its production line for the manufacture of Extra EA 500 aircraft.
In a statement after the market close Tuesday, the FTSE 100-listed engineering and aerospace group said the agreement includes orders for its M250-B17F engines, and said it expects "hundreds of engines" to be delivered over coming years, primarily in aircraft for the fast-growing Chinese general aviation market.
The M250 is a light gas-turbine engine for light turboprop aircraft and helicopters.
It said the agreement is valued in excess of USD50 million, and deliveries will begin in 2015.
"Engines for the aircraft will be assembled at Rolls-Royce facilities in Indianapolis, US, and shipped to Zhenjiang for installation in the aircraft," it said.
Rolls-Royce said the two companies are also in discussions on maintenance, repair and overhaul, and other new service capabilities to support the Chinese market, as well as training opportunities.
Rolls-Royce shares closed trading Tuesday 0.3% higher at 873.50 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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