UPDATE 1-Eurocopter unveils cost-cutting plan

Thu Oct 22, 2009 5:05am EDT

* Plan aims to cut costs

* Company wants to improve cash generation

(Adds details)

PARIS, Oct 22 (Reuters) - Eurocopter, the world's largest civil helicopter manufacturer, unveiled plans on Thursday to cut short-term costs by 200 million euros ($298.6 million) as part of a corporate response to the global financial crisis.

The division of European aerospace and defence group EADS EAD.PA said the plan would also improve cash by reducing inventories and redeploy some staff.

It did not say whether there would be any redundancies.

The programme -- dubbed SHAPE -- will also include measures to improve productivity and an increase in research and development budgets, the company said in a statement.

The Airbus sister company did not say whether production rates would be affected.

French newspaper Les Echos reported last week that Eurocopter would cut costs and may cut production in 2010 and 2011. ($1=.6697 Euro) (Reporting by Tim Hepher; Editing by James Regan)

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