THE first ship to be built on the River Tyne for a decade was named yesterday, in front of thousands of people celebrating the return of shipbuilding to Tyneside.

Lady West, wife of First Sea Lord Admiral Sir Alan West, performed the honours at the rejuvenated Swan Hunter shipyard by breaking a bottle of Champagne against the hull of the 22,000-tonne Royal Fleet Auxiliary troop carrier Largs Bay.

The imposing grey vessel is one of two the yard is building for the Royal Fleet Auxiliary in a deal worth £140m.

It has been designed to move troops, vehicles and equipment for the three armed services.

Up to 2,000 guests, including high-ranking Naval officers and yard workers and their families, gathered at the Wallsend yard to witness the naming of the ship, which was built in 20 months, and which put Swan Hunter back on the world shipbuilding map.

The yard faced closure after the receivers were called in during the early 1990s, but Dutch businessman Jaap Kroese intervened in 1994, vowing to bring shipbuilding back to the Tyne. As he watched his dream realised yesterday, Mr Kroese said: ''I feel absolutely marvellous, it is a wonderful day, not just for me, but for the entire workforce. We can build ships and we can build them beautifully."

Worker John Strachan, who is retiring in two weeks' time after 42 years at the yard, said: "It is great to see a ship back on the Tyne again."