Westland Wins Civil Order

Westland, the helicopter subsidiary of UK engineering group GKN, has finalised contracts worth 167 million for its EH101 aircraft, including a breakthrough civil order in Japan. The company, the UKs last dedicated helicopter manufacturer, is believed to have sold its first civil variant of the EH101 to the Tokyo Metropolitan Police Agency for an estimated $28 million.

GKN refused to confirm the indentity of the buyer, saying only that it had concluded a civil sale in the far east.

Westland officials, meanwhile, said the group had also signed off long-awaited contracts with the Italian government for 16 naval helicopters.

Agusta, GKNs Italian joint venture partner on the EH101, will enjoy the lions share of the projected 450 million order.

Nevertheless, GKN Westland will receive some 150m of work, with first deliveries expected in early 1998. The Italian order - initially announced 18 months ago - comprises eight anti-submarine warfare helicopters, four surveillance variants and four utility transport models. Despite signing off the deal, negotiations were said to be continuing on contractual technicalities - thought to involve the allocation of sub-contract work. Analysts said the civil order was more important as GKN and Agusta had been seeking non-military orders for more than two and a half years. The Japanese deal follows intensive marketing by Kawasaki Heavy Industries and Okura, the Japanese trading house. Under the prospective contract, Kawasaki is expected to establish maintenance and support facilities for the Tokyo police agency. Officials at GKN believe the breakthrough in Japan could lead to a joint venture with Kawasaki. Copyright Financial Times Limited 1997.