Honeywell (NYSE: HON) announced today that its LTS101-700D-2 engine has been selected by Changhe Aircraft Industries of Jingdezhen, China, to power the Z-11 helicopter. Terms of the agreement were not disclosed.

"Honeywell Aerospace is expanding its presence in China to address growth and demand in the region – and will begin providing new production LTS101-700D-2 engines to Changhe during the first quarter of 2010," said Doug Kult, Honeywell Director of Sales, Helicopter and Surface Systems. "The Z-11 is a multi-mission, single-engine helicopter with application for police and rescue, aerial observation, electronic news gathering, VIP and executives, and border patrol operations. The helicopter is also available for export. The LTS101 powered Z-11 will offer 7 percent more take off power, up to 10 percent lower specific fuel consumption, and greater than 30 percent lower operating costs."

The new engines will mark a restart of LTS101 production in Honeywell's Greer, S.C., facility.

The Z-11 was designed by Changhe, which holds all intellectual property rights and has obtained type certificate and production certificate awarded by the Civil Aviation Administration of China (CAAC).

Wei Song Lin, Changhe, Program Director for the Z-11, said, "The Honeywell engine will give the Z-11 the performance advantage it needs to succeed. Our customers will enjoy the low cost of operation, improved power, and high reliability." Changhe has estimated the sale of more than 300 helicopters over the next 5 to 10 years in China.

The engine has most recently been part of an extremely successful retrofit program replacing the existing engine on the ASTAR 350 model B2.

Kult said, "In addition, the availability of new production engines will also benefit our retrofit customers – especially the new accessories that will further offset their cost of operation." The new accessories will be available to both current AS350 operators with a LTS101 engine and any customer considering the engine upgrade to their ASTAR.

Honeywell's LTS101-700D-2 is the latest in a lineage of the LTS101engines powering various models of the Eurocopter AS350 series helicopter. The engine family has accumulated more than 10 million flight hours of operation. Honeywell has continuously invested in engine improvements through the infusion of new technologies and upgrades. As a result the engine family has demonstrated a four-fold improvement in reliability since 1996 and it currently performs at world-class levels.