Rolls-Royce Signs USD$1.2 Bln Deal With China's HNA

Rolls-Royce on Friday signed a USD$1.2 billion agreement to supply airline engines to China's HNA Group.

Rolls-Royce will supply Trent 700EP engines to power Hong Kong Airlines' new fleet of 20 Airbus A330s, the British company said in a statement. The deal includes a long-term service agreement.

The deal was signed as China's Commerce Minister Chen Deming met Britain's Business Secretary Peter Mandelson in London, and follows a trade visit by Chinese Premier Wen Jiabao to London in early February.

"This high-profile mission, sent so soon after the China-UK business summit, shows how highly the Chinese value their trade with the UK, and demonstrates their commitment," said Mandelson.

HNA is a major shareholder in Hong Kong Airlines.