Kawasaki Heavy Industries Ltd. said Wednesday it has struck a basic agreement with Brazilian aircraft makerEmbraer SA to develop and manufacture the main wings of Embraer's next-generation small jets.

It will be the first time for the company to develop an entire wing since the 1970s, when it participated in the joint development of the YS-11 with other Japanese companies.

Embraer's 180-seat plane is scheduled to start commercial flights in July 2004. The Brazilian company has received orders for 120 jets.

Kawasaki will start producing wings at its factory in Gifu Prefecture in 2002.

Kawasaki produces the bodies of Boeing Co.'s 767 jets and is considering participating in development of the U.S. company's next-generation jets.