AERO companies today missed out on multi-million-pound aircraft and missile contracts which would have created 200 new skilled engineering jobs in Burnley and Pendle.

Cleveland Guest at Colne and Burnley's AIT and Pendle Aeroform companies had key stakes in bids for Government contracts worth more than £3.5 billion.

But as the contracts were announced in Parliament this afternoon it became clear the local firms had lost out to rivals in the contracts battle.

The Colne firm had stakes in two of the major contracts being fought out by international competitors.

Biggest interest was in the £750 million contract to supply parts for the RAF's new anti-tank missile.

Cleveland's work was worth up to £5 million a year, supplying components for the SWARM 2000 (Smart Weapon Anti Armour) - a warhead dispenser incorporating the world's most advanced technology.

Success here would have doubled the 100-strong skilled workforce and boost home and export sales.

Cleveland also had a two-pronged stake in supplying key parts to Casom, the new conventionally-armed stand off missile for the RAF. The company was poised to be winners if Defence bosses chose either the Taurus KEPD 350 missile, offered by a German, Swedish and British consortium, or Grand Slam, a joint British/American venture.

Both were front runners in the fierce battle for the £800 million contract - but neither got the nod from defence chiefs today.

Manufacturing the wings and aircraft attachments for Casom would bring in £1.5 million worth of new business a year and create 25 new jobs at the North Valley Road-based firm.

Burnley aerospace firms, AIT and Pendle Aeroform had their fingers crossed that they too would find success in the biggest order of the day - the £2 billion contract to replace the Nimrod maritime patrol aircraft.

Success, would have brought millions of pounds of work to Burnley and created more than 60 new skilled jobs.

But favourites, British Aerospace, was given the go-ahead - which means good news for many Lancashire companies, but not for the Burnley firms in the rival camp.

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