THE new £2 billion contract to replace the RAF's ageing Nimrod patrol aircraft will protect 10,000 jobs, says the chief executive of British Aerospace.

And the company is predicting that spin-off orders from the plane could create around £9 billion worth of business in the coming years.

The Nimrod 2000 contract, won amid fierce competition, will secure thousands of skilled engineering jobs in Lancashire alone, although a total of 200 British companies are involved in the project.

The RAF contract is to upgrade 25 existing Nimrod planes - used to give early warnings of enemy submarine, ship and air attacks - with the latest equipment and new engines.

Chief executive Sir Richard Evans said: "This contract will provide the Royal Air Force with a new generation of aircraft and create and sustain some 10,000 high technology jobs throughout the UK's aerospace industry." Mike Rouse, managing director of BAe's Military Aircraft Division described the announcement as excellent news for the region.

"It clearly demonstrates that Nimrod 2000 is the best solution for Britain's defence needs and for safeguarding over 2,500 jobs in the North West aerospace industry."

Additionally, the company has teamed up with McDonnell Douglas and Boeing in America to build new Nimrod aircraft to meet an anticipated market for 250 planes.

Delighted Ribble Valley MP Nigel Evans said: "Champagne corks will be popping in the North West and this is great news for the Ribble Valley.

"When BAe is successful it means that thousands of people, not just in BAe but in smaller companies in the area, will benefit.

"Congratulations to all involved with BAe. The Ribble Valley surely has a company and workforce to be proud of."

Lancashire County Council leader Louise Ellman described the news as "bringing hope to future generations".

"This news is a welcome lifeline for jobs, skill and high technology in Lancashire, one of Europe's most heavily defence-dependent areas."

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.