The parties plan to set up a joint venture in the Liangjiang New Area of Chongqing, with the test-flight of the first aircraft assembled by the joint venture expected to be performed by the end of 2012.
"AgustaWestland is giving the highest priority to the Chinese market and together with CQHIC we will be able to satisfy the helicopter requirements of this increasingly important province," Emilio Dalmasso, senior vice president of AgustaWestland's Commercial Business Unit said.
"Aerospace is one of the most promising industrial sectors in the province and we are committed, through this partnership, to play a major role in its future growth."
AgustaWestland said its commercial helicopters' presence in China has experienced rapid success in recent years for various applications, with orders totaling more than 40 units.
"The cooperation between AgustaWestland and CQHIC will allow AgustaWestland to further strongly expand its presence in China's market and boost the development of the aerospace industry in Chongqing, helping us to achieve our common goal," CQHIC Board Chairman Xie Huajun said.
Apart from AgustaWestland's sales in the country, it has set up an industrial collaboration with Jiangxi Changhe Aviation Industries Co., an AviChina company, establishing the Change Agusta Helicopter joint venture.