A £20 MILLION centre of excellence for the aerospace industry will be built in Lancashire to give the region's manufacturers a vital competitive edge in international markets.

The Aerospace Innovation Centre will be the most advanced in Europe and, according to the man behind the project, Dennis Mendoros, it will create or safeguard more than 2,000 jobs over the next five years.

The chairman of the North West Aerospace Alliance said the centre was expected to generate at least £100 million of new orders every year for the region.

The announcement was made last night at the International Air Show at Farnborough where the Alliance has its largest-ever presence at the world's biggest aviation event.

"This is fantastic news for the aerospace industry in Lancashire," said Mr Mendoros, managing director of Earby firm Euravia. "We have been working towards this moment for the past 10 years and the centre will give us the vision to move forward.

"This new facility will create or safeguard over 2,000 jobs in the next five years and will annually generate £100million of new business for the North West economy."

A location for the Aerospace Innovation Centre has yet to be finalised, but Mr Mendoros said it would definitely be built in Lancashire. "Given that the Alliance has its roots in Lancashire, it is only right that we should have the centre here," he said.

Mr Mendoros would prefer to see it in East Lancashire, although BAE Systems in Samlesbury and Warton could put up land to house the centre.

The Aerospace Innovation Centre would make world-leading research and technology available to companies of all sizes. "It will cascade best practice in aerospace technology from universities and research institutes all the way down the supply chain to companies employing only around a dozen people," he added. "It will help us to re-establish our competitive edge to compete in world markets," added Mr Mendoros.

Making the announcement at Farnborough, Steven Broomhead, chief executive of the North West Development Agency, said the Aerospace Alliance was the "preferred bidder" to develop the innovation centre.

Because of the size of the project, it had to go out to tender throughout Europe, but the bid from the Nelson-based Alliance has now been approved and a contract is expected to be announced shortly.

"The aerospace sector is of key strategic importance to both England's North West and the UK as a whole," he said.

"The NWDA is working closely with the Alliance to maintain the region as a global centre of excellence and the centre will be a dynamic force in bringing together academia and industry to become a focal point for shared thinking and innovative ideas."