A FACTORY, which made tanks for both world wars but closed last year axing more than 300 North-East jobs, has been bought by an engineering firm.

Defence and subsea company Reece Group has paid an undisclosed sum for the BAE Systems factory, in Scotswood, Newcastle, and will transfer work from its existing sites into the plant.

Reece, which makes counter-mine and counter-improvised explosive device products, says it will use the former Vickers Armstrong factory to build a steel and aluminium fabrication plant and a research and development centre for developing oil, gas and subsea products.

The firm employs about 500 people and could create new jobs in the move.

BAE previously blamed Government defence cuts for the factory closure.

John Reece, Reece Group chairman, said: “We are delighted to have been selected by BAE Systems as purchaser of this landmark site.

“We believe engineering and manufacturing still has a valid and prosperous future in the North-East, and we place great emphasis on research and development.

“Our approach to product development will continue and to achieve this we will be looking to attract the best engineers from the region.

“However, more poignantly for me personally is that we will be located on the site where my father, the late Dr Alan Reece, took his first job as an apprentice for Vickers Armstrong.”