Midlands-based aerospace group Rolls-Royce has won new business in South America through its share of an order from LAN Airlines of Chile for V2500 engines to power up to 40 Airbus A320 series aircraft.

The contract involves a firm order for 18 aircraft plus 22 options, and is in addition to a previously announced order by Santiagobased LAN for 20 V2500-powered A320 family airliners.

Rolls-Royce is a senior shareholder in the International Aero Engines consortium which produces the V2500. IAE's other partners are Pratt & Whitney of the United States, MTU Aero

Engines of Germany and the Japanese Aero Engines Corporation.

Meanwhile, Airbus says it wants to ramp up the construction of aeroplane parts in China to help spur sales in the country, which it predicts will need 200 superjumbo jets like its A380 over the next 20 years.

The European aerospace consortium also reiterated its projection that it will purchase $ 60 million worth of components in China in 2007, rising to $120 million three years later.

By increasing the sourcing of parts, especially for the A380 Airbus hopes to better integrate the mainland market into its supply chain.

Five Chinese companies produce parts for Airbus planes, including emergency doors for A320s made by the Shenyang Aircraft Industrial group and the main parts for the A320's nose by Chengdu Aircraft Industrial.

The consortium will also transfer technologies for producing entire A320 jet wings to China that will enable all the components to be produced in the country by 2007.