A COLNE firm has its sights set on a multi-million pound defence contract which could bring scores of new skilled jobs to the town.

Cleveland Guest is celebrating news that it has been chosen as a key partner in the bid to provide the RAF with the latest guided anti-tank weapon.

The contract, which could be worth up to £5 million a year for the 100-worker company, is to manufacture components for Swaarm 2000 (Smart Weapon Anti Armour) - a warhead dispenser system incorporating the world's most advanced technology.

Cleveland will link with designers, Hunting Engineering of Bedford, to home in on the contract replace current RAF anti-tank defences - combating the challenge of tough international competition.

If the weapon is selected, it will provide long-term job opportunities and multi-million pounds home and export sales. A Ministry of Defence decision is expected in the Summer.

Success could mean a total turn-around in fortunes for the Colne company which itself faced a knockout blow just three years ago. Then the North Valley Road-based firm had to be rescued from receivership by a management buy-in.

But within a year it had landed an £11 million contract to design and make jet engine components for Hurel Dubois - work now in production and progressing well.

Cleveland managing director Steve Hollis says the bid contract is potentially huge and the workforce could double in size.

SWAARM 2000 can be used against a wide range of armoured fighting vehicles and can be launched at varying altitudes from Tornado, Harrier and Eurofighter aircraft.

It is controlled by an on-board guidance system and dispenses warheads that sense and attack vehicles.

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