KAI inks deal with Airbus for production of 300 helicopters

Korea Aerospace Industries Ltd. (KAI), South Korea's sole military aircraft manufacturer, and Airbus Helicopters SAS (AH) announced on Thursday that they have signed a preemptive integrated procurement contract for the production of up to 300 units of the light-armed helicopter (LAH) and Korean utility helicopter (KUH).

This contract covers the potential volume over the next ten years and includes not only LAH mass production but also derivatives and anticipated export quantities of KUH.

Both companies plan to expand their strategic partnership in future programs following this contract. Starting with the KUH development project in 2006, the collaboration has extended across various rotary-wing programs.

"KAI has been a solid partner in successfully completing various helicopter programs together with AH for a long time," AH's executive vice president Matthieu Louvot said. "AH and KAI will continue to ensure a stable supply of the two high-performance platforms."

"We will continue to enhance cooperation between the two companies in all aspects of rotary-wing businesses, including existing mass-production projects, as well as derivatives and new developments, maintaining the collaboration with AH," KAI's executive director Han Chang-Heon stated.

Write to Dong-Hyun Kim at 3code@hankyung.com