THE development of a new anti-tank missile system will bring a jobs boost for the region.

Six companies across the region are set to benefit from work worth about £50m.

Saab Bofors Dynamics has been chosen as the preferred bidder for the Ministry of Defence's £400m next generation Light Anti-Armour Weapon (Nlaw) programme, beating competition from rival Kestrel.

The manufacture of the weapons is expected to create more than 500 jobs, including at least 86 in the North-East.

But Defence Procurement Minister Lord Bach said there could be many more jobs created, depending on the export success of the weapons.

He said: "This project is initially creating more than 500 jobs around the country, including 86 in the North-East.

"However, depending on the export success of the weapon, hundreds of more jobs could be created or safeguarded in the industry."

One of the main subcontractors for the project is Express Engineering, of Gateshead.

The company, which will supply 12 different components for the new system over the next three years, expects to create more than 30 jobs, sustaining another 20 positions.

David Bowles, chief executive of Northern Defence Industries (NDI) said: "All credit to Express Engineering for winning a place on the team in the first place, and then ensuring that other North-East companies had the opportunity to get involved."

"We were surprised at the strength in depth of the North-East defence engineering industry," said Roy Williams, UK sales and marketing director of Saab Bofors.

"Express Engineering and NDI have helped us to identify and develop a further cluster of suppliers both for the anti-armour weapon and for other projects, and we hope it can increase its role in supply chain management.

"We hope this is the beginning of a long and mutually advantageous relationship."

The contract is also set to create about 17 jobs at Saia-Burgess Switches in Gateshead; six at metal parts manufacturer Aztec in Jarrow; five each at Springwell in Washington and battery firm SAFT in Newcastle, and three at Hardy Advanced Composites in Alnwick.