THE failure of tank builder Vickers Defence Systems to win a £1bn Greek order is putting hundreds of jobs at its Tyneside factory under threat.

The contract would have allowed the Newcastle firm, owned by Rolls-Royce, to increase its workforce substantially from its present level of 450 staff. Now the company is hoping to win a £300m Ministry of Defence order due to be announced by the end of this month. But it faces competition from rival British Aerospace

Winning that order, for 110 Terrier engineering tractors for the British Army, could result in employment levels at the firm being boosted beyond 1,000.

Parent company Rolls-Royce is due to report its annual results tomorrow. There has been speculation in recent weeks that Vickers could be sold to armoured vehicle maker Alvis, but failure to win more work could scupper that deal.