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13:28 GMT, Thursday, 3 July 2008 14:28 UK

Ships deal good for manufacturing

An aircraft carrier

The contract to build the UK's biggest ever aircraft carriers will be good news for the West Midlands, industry experts have predicted.

Peter Mathews, president of the Midlands World Trade Forum, said it was great for areas with a manufacturing history, such as the West Midlands.

The contracts would have a knock-on effect for engineering firms, he said.

The Ministry of Defence has signed contracts worth £3.2bn to build two ships able to carry up to 40 aircraft.

"There are so many extras which will come along with these contracts - the hydraulics, the communication systems, the fitting the ships out, the catering, there is potential for the region to have a massive input," Mr Mathews said.

"The contracts will almost certainly have a knock on effect for this area"
Birmingham Chamber of Commerce

The 65,000-tonne ships, HMS Queen Elizabeth and HMS Prince of Wales, are due in service in 2014 and 2016.

Each ship will be a similar size to the ocean liner the QE2, with a flight deck the size of three football pitches.

Mr Mathews said he expected good news for the region when bids and tenders for work were announced in a few months time.

His views were echoed by the Birmingham Chamber of Commerce.

"The contracts will almost certainly have a knock on effect for this area," a spokesman said.

"I think there will be dozens of companies in this area who will be likely to get business from it."




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Related to this story:
Ships deal will secure 2,000 jobs (03 Jul 08 |  England )
Warship deal takes a step closer (01 Jul 08 |  Glasgow, Lanarkshire and West )
Warship deal welcomed in Scotland (20 May 08 |  Glasgow, Lanarkshire and West )
Firms scoop £4bn carrier contract (20 May 08 |  Business )
Warship contracts 'worth £390m' (12 May 08 |  Glasgow, Lanarkshire and West )

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