Bosses announced yesterday that a commercial partnership will be forged between A&P Tyne in Hebburn and McNulty Offshore, South Shields, who will work with BAE Systems Submarine Solutions on part of a £3.9bn double aircraft carrier contract for the Navy.

The order will create and safeguard several hundred jobs at both yards
over several years.

Steve Keyworth, managing director of McNulty Offshore, said: "We will join with A&P Tyne to form an aircraft alliance company. Sections of work will be shared out between both yards, before the assembly of the centre section of the aircraft at BAE Systems, at Barrow-in-Furness.

"This contract will mean a lot of extra work for both yards and provide continuity of employment, which has been so lacking in the industry of late."

Dave Skentelbery, managing director of north east business for A&P, said: "We are looking forward to working on what is a key project. Both ourselves and McNulty Offshore will provide credible support for this major defence contract.

"The order will provide a steady workload for both yards for several years."

The tri-party group will be named Tyne Carrier Associates. and will carry forward the manufacturing phase of the double aircraft carrier project for the Ministry of Defence (MoD).

The first steel is not set to be cut for the carriers until January 2009, but both South Tyneside yards will be busy with preparatory work in the next few months.

Part of the work will involve construction of the upper sections of the Royal Navy carriers.