TANK maker Alvis Vickers is recruiting 90 staff for its North-East plant as it prepares to begin full production of the Trojan and Titan projects.

The vehicles will replace two of the British Army's Chieftain Armoured vehicles.

Alvis Vickers was awarded the £250m contract in March 2001 for the supply of 66 vehicles.

The machines, being built in Newcastle, will move from the prototype stage to full production by the end of the year.

A spokeswoman said: "We are ramping up recruitment for the Titan Trojan programme in the next 12 months."

There was jobs gloom elsewhere in the Alvis Vickers company as it announced about 190 jobs are to go in Telford and a further 50 at its Norwegian operation Alvis Moelv.

Alvis Vickers is cutting staff numbers at its Telford plant from 357 to 167 after a fall in demand.

The firm, which employs 1,100 people across the UK, said the Ministry of Defence's recent cancellation of the Multi Role Armoured Vehicle programme had been a contributing factor to the decision.

Alvis, which generated sales of £225m in 2002, is one of the world's leading manufacturers of armoured fighting vehicles, with operations in the UK, Scandinavia and South Africa.

It produces vehicles that range from battle tanks to armoured personnel carriers.