UPDATE 1-Rolls Royce signs $1.2 bln deal with China's HNA

* Rolls Royce in engine supply deal

* Ministers witness signing

LONDON, Feb 27 - Rolls Royce Group signed on Friday a $1.2 billion agreement to supply airline engines to China's HNA Group.

The deal will see Rolls Royce supply engines for 20 Airbus A330 aircraft and carry out services on the equipment, the company said in a statement.

The deal was signed as China's Commerce Minister Chen Deming met Britain's Business Secretary Peter Mandelson in London, and follows a trade visit by Chinese Premier Wen Jiabao to London in early February.

"This high-profile mission, sent so soon after the China-UK business summit, shows how highly the Chinese value their trade with the UK, and demonstrates their commitment," said Mandelson.

HNA Group is the parent company of Hainan Airlines, China's fourth-largest carrier, which is based in the south of the country.

Britain has strengthened its relations with China in the last few years, seeing scope for greater trade and investment ties with China at a time when Europe and the United States are mired in recession.

During Wen's visit to Britain, Prime Minister Gordon Brown said Britain aimed to double exports to China in the next 18 months.

Britain exported goods worth 4.6 billion pounds ($6.53 billion) to China in the first 11 months of 2008, but they were dwarfed by imports of 20.7 billion pounds.

Before arriving in London, Chen visited Berlin, where German and Chinese firms signed new business contracts worth more than $10 billion.