UPDATE 1-Alcan aerospace unit sees flat growth in 2009, 2010

VOREPPE, France, June 10 (Reuters) - The aerospace unit of Rio Tinto's aluminium unit Alcan said on Wednesday it expects to see flat growth this year and next, with lower plane output offset by the rise of new models like the Airbus A380. "We should see (aerospace) demand rise again towards the end of 2010," Christophe Villemin, President of Alcan Global Aerospace, Transportation and Industries, told reporters. "We have a difficult year ahead of us," he added. He declined to comment on the possible sale of the division by Rio Tinto , which is considering selling certain downstream assets. Alcan Global Aerospace supplies light-weight aluminium products for Boeing and Airbus planes. The division has reduced capacity at its plants to adjust to a flat outlook but will significantly raise its research and development spending in aerospace this year and next as it prepares for a return to growth, Villemin said. Aerospace accounts for 50 percent of the division's activity which also includes machines for industry and parts for land transport. Villemin also expected flat growth for the division as a whole this year, with operations like machines for the auto sector hurt by the economic crisis and others such as train and military transport seen improving.