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Last Updated: Friday, 15 September 2006, 07:45 GMT 08:45 UK
Rolls-Royce eyes $500m China deal
Rolls-Royce jet engine
Rolls-Royce is supplying ten Chinese airlines
Rolls-Royce has agreed to supply aircraft engines to Chinese carrier Hainan Airlines in a deal which could be worth more than $500m (265m).

Derby-based Rolls-Royce will supply 100 engines for use in aircraft built by Brazilian firm Embraer from next year.

It already has a contract to supply engines to Hainan for use in seven Airbus A330 planes ordered in July.

Its engines are currently used by 10 Chinese airlines and further demand is expected as air travel there increases.

'Global potential'

The Asian aviation market is set to underpin Rolls-Royce's overall growth over the next 20 years, with global demand for 6,500 engines forecast by 2026.

"This order is an important affirmation of the global potential for regional aircraft, particularly in expanding markets such as Asia," said Ian Aitken, president of Rolls-Royce's corporate and regional aircraft.

Rolls-Royce services about 600 airlines around the world.

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