Part of a multi-billion pound defence contract has been won by a British firm which has a major base in Basildon.

The Government has ended weeks of speculation by announcing that two new aircraft carriers will be built by BAE Systems, which has premises in Christopher Martin Road, Basildon.

The work is to be shared with rival bidder, French defence giant Thales and both firms have promised to carry out most of the work in the UK which is expected to create about 2,000 jobs and secure a further 10,000 at UK shipyards.

Defence Secretary Geoff Hoon told the Commons: "We envisage that this alliance will be led by BAE Systems as the preferred prime contractor with responsibility for project and shipbuilding management."

The Ministry of Defence order is made up of £2.9bn in building costs for two aircraft carriers, but billions of pounds will also be spent on maintaining the ships over their service lives.

The ships are to be built at BAE Systems Marine at Govan, Vosper Thornycroft at Portsmouth, Swan Hunter on Tyneside and Babcock BES at Rosyth.

Shadow defence secretary and Essex MP Bernard Jenkin said that in splitting the work between BAE Systems and Thales, Mr Hoon had "bottled out" of the decision.

A spokesperson for BAE Systems said today that it was "too early to say" whether the Basildon operation would have a direct involvement in work on the order announced today.

More in tomorrow's Evening Echo

Published Thursday, January 30, 2003