British engineer Rolls-Royce said on Friday it has finalised a deal to create a joint venture which will design and develop accessory drive train transmissions for all of the company's future civil aircraft engines.

The joint venture with Hispano Suiza, part of French aerospace and defense company Safran, will run for an initial 25-year contract and will contribute to a range of aircraft including engines for the new Airbus A330neo jet.

The companies said a production plant would be built in "a competitive country" starting next year.

The two companies first announced the deal in July.