BAE wins multi-billion carrier contract

Defence giant BAE Systems was named by the Government as the prime contractor in a multi-billion pound order to build two new aircraft carriers.

The contract will create a jobs bonanza across the country.

Four shipyards in Scotland, the North East and Portsmouth will benefit most from the contract, which will safeguard 10,000 jobs and create more than 2,000 posts.

French firm Thales, which also bid for the work, will be given a "major role" in building the huge vessels.

Defence Secretary Geoff Hoon said the Government had decided that a partnership was the best way to build the ships.

Mr Hoon told the Commons that the ships would be built by a combination of four yards - BAE Systems Marine at Govan, Vosper Thornycroft at Portsmouth, Swan Hunter on Tyneside and Babcock BES at Rosyth.

The ships will be entirely built in the UK and will be a "massive technologically challenging programme", said the minister.

BAE will now be the main contractor for the construction of the giant 60,000 tonne vessels but subcontractors will be in line for years of work.

The ships will enter service in 2012 and 2015 and will each carry up to 48 new joint strike fighter aircraft.

The news was warmly welcomed by trade unions.

Most watched News videos