PLANS to build the Royal Navy's next generation of naval guns could create hundreds of jobs in the region.

More than 70 supply companies across the North-East have already signed up to join the supply chain of US company United Defence, which is bidding for the contract.

If successful, about 20 of the 20-tonne, £9m naval guns will be built during the next 30 years.

The MK45 gun, currently being fitted to US destroyers, will be the weapon of choice on the Royal Navy's next generation of type 45 frigates.

Although the Ministry of Defence contract is not expected to be awarded until 2005, United Defence has already toured the region's defence contractors to look for potential partners.

Gary Scott, operations manager for Northern Defence Industries (NDI), said: "This is good news for the region. Although the contract has not yet been awarded, United Defence needs a supply chain in place in the event that it is successful.

"United Defence has not visited any other region and this project represents a massive vote of confidence in the North-East's manufacturing and engineering companies."

"If the contract is awarded to United Defence, the result for the North-East will sustain jobs in the defence sector for years to come."

United Defence previously planned to invest more than £50m in the region when it was competing for the £100m contract to build the Future Command and Liaison light jeep for the British Army, a deal won by Alvis-Vickers.