A&P Tyne, Hebburn, will build two sections of the UK's future flagships HMS Queen Elizabeth and HMS Prince of Wales.

The contract will help safeguard more than 200 jobs at the yard over the next five years.

Welcoming the news, A&P Tyne managing director David Skentelbery said: "Our Hebburn workforce has a proud tradition of delivering a first-rate job, and I have no doubt that they will continue to do so on this hugely prestigious contract.

"At A&P Tyne, we are set to deliver a substantial part of these ships and I am delighted that we can represent the north east on the project."

There were fears the Hebburn yard could lose out on the contract, if Conservatives win the next general election and axe the massive £4bn project, and the £55m contract is still smaller in value than the mooted £75m deal.

But today's announcement by the Aircraft Carrier Alliance (ACA) was warmly welcomed by Jarrow MP Stephen Hepburn.

He said: "This is an historic day for shipbuilding in the North East.

"It is fantastic that the A&P Tyne workforce, particularly the young apprentices starting a career at the yard, will have the opportunity to work on a project which is so important to the nation."

A&P Tyne is fabrication facility capable of turning out up to 10,000 tonnes of steel per annum for marine and civil structures.

The QE Class aircraft carriers will be the biggest surface warships ever built in the UK.

ACA programme director Geoff Searle said: "This is a fantastic day for A&P Tyne and for the ACA.

"These carriers will be this country's future flagships, so our primary focus and that of our contractors is ensuring we deliver the best vessels possible to the Royal Navy."