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Kawasaki Heavy Industries Ltd. will stop manufacturing fuselage panels for Airbus SAS A321 small jetliners at the end of March when its current contract with the European aircraft company ends, a KHI spokesman said Thursday.

Kawasaki Heavy, the first Japanese aircraft manufacturer to supply key components to Airbus, failed to reach an accord on the terms of a new contract, the official said.

Kawasaki Heavy has so far delivered fuselage panels for about 370 planes to Airbus since it began producing them at a plant in Gifu Prefecture in 1991, according to the official.

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