Part of a major Royal Navy aircraft carrier contract has been given to a Hampshire company.
An artist's impression of one of the new aircraft carriers
Defence Secretary John Reid announced that parts for two new aircraft carriers would be built at Vosper Thornycroft (VT) in Portsmouth.
Other parts of the ships will be built in Scotland and in Rosyth and at yards in Barrow-in-Furness.
The ships will be the largest and most powerful surface warships ever built in the UK, according to the Royal Navy.
'Value for money'
Paul Lester, chief executive at VT, said: "We are very pleased to contribute to the design, planning and build of the two CVF [Future Aircraft Carriers] ships.
"Today's announcement demonstrates tangible progress in this important project."
The company said its involvement in the project was still subject to "value for money and cost effectiveness considerations".
The government claims that work on the aircraft carriers could sustain and create about 10,000 jobs in the UK.