China AVIC II, Sikorsky to develop helicopter -paper

SHANGHAI, July 13 (Reuters) - State-owned aircraft maker China Aviation Industry Corp. II (AVIC II) plan to jointly develop a civilian helicopter with United Technologies Corp.'s (UTX.N) Sikorsky Aircraft, state media said on Friday.

AVIC II arm Changhe Aircraft Industries and Sikorsky plan to cooperate to develop a one-tonne light helicopter, China Daily reported, citing comments by Changhe Chairman Wang Bin on the sidelines of a signing ceremony for a subcontracting agreement.

Changhe could not immediately be reached for comment.

China's strict controls on low-altitude air space have curbed the growth of the country's helicopter market, with roughly 100 helicopters in service.

But demand for helicopters could rise sharply once the government eases controls, perhaps as early as 2010, a senior executive with Eurocopter, a unit of EADS (EAD.PA) (EAD.DE), told Reuters in April.