June 5 (Bloomberg) -- GKN Plc, a U.K. maker of aerospace parts, said the EH101 helicopter built by its AgustaWestland venture was selected by the Japanese Navy for minesweeping. The contract may be worth as much as $500 million.

Japan is ordering 14 helicopters to replace United Technologies Corp.'s Sikorsky aircraft. The helicopters will be based at Iwakuni, near Hiroshima, the company said.

``We have still to finalize contract negotiations,'' said Peter Baillie, a GKN spokesman. ``But the significance is that we're breaking into a market in Japan that has previously been the preserve of U.S. companies.''

AgustaWestland is a venture between Redditch, England-based GKN and Finmeccanica SpA, Italy's state-owned defense and aerospace company. United Technologies pulled its Sikorsky helicopter out of the competition in May last year.

Japan's Kawasaki Heavy Industries Ltd. will assemble the EH- 101 helicopters, initially using parts shipped from Europe. Japan is considering ordering additional military helicopters, taking the total to about 80, Baillie said. He declined to give financial details.

Last Updated: June 5, 2003 12:36 EDT