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Rolls-Royce wins $130m China Southern order

Rolls-Royce Group (RR.LSE) has won a contract to supply US$130 million worth of V2500 aircraft engines to China Southern Airlines (ZNH.NYSE, 600029.SH), Dow Jones reported. The engines will be used to drive 20 Airbus A320 aircraft in the China Southern fleet, which are are scheduled to begin delivery in 2011. The order includes a long-term services agreement. China Southern is already one of the largest customers for the V2500 engine, using them in its 136 aircraft. The V2500 is produced by the International Aero Engines consortium, which includes Rolls-Royce, Pratt & Whitney, Germany’s MTU Aero Engines (MTX.ETR) and the Japanese Aero Engines Consortium, comprised of Mitsubishi Heavy Industries, Kawasaki Heavy Industries (KWHIY.TYO, KHE.ETR) and Ishikawajima-Harima Heavy Industries (S7103.TYO). Rolls-Royce shares gained slightly on the news.

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