A JOBS bonanza is expected to hit the both banks of the Tyne next week, with two of the most famous names in shipbuilding set for a new lease of life.

The Swan Hunter site in Wallsend, North Tyneside has emerged as favourite to land a huge £130m Ministry of Defence (MoD) contract, with Hebburn's Cammell Laird site on the opposite bank expected to receive a chunk of a £300m order.

Swans will build two Alternative Landing Ship Logistic (ALSL) vessels, creating four years' work for 2,000 people, and defence minister Geoff Hoon is expected to reveal the South Tyneside yard's success in taking a major part of the £300m roll on roll off (roro) ferry contract.

Up to 3,500 new jobs could be created on the Tyne, but commercial director at Swan's, Norman Brownell, was keeping his cards close to his chest.

"We've been in regular contact with the MOD and answering a number of questions about the deal," he said.

" It would take a very good contract to beat us. However, nothing is signed yet and we'll have to wait for an official announcement."

The announcement had been due on November 30 but Government officials could bring this forward and award Swans "preferred bidder" status, effectively a pre-contract agreement.

Cammell Laird is favourite to land at least two of the six MoD roro's after facing severe competition from foreign yards.

Fortunately for the workers at the Hebburn yard,political pressure is likely to make sure the contracts stay in the UK.

Unions at the Govan yard in Glasgow are desperate to land part of the roro order and recently warned of thousands of redundancies if they fail in their bid.

While Chancellor of the Exchequer, Gordon Brown, has backed Govan, Tyneside MPs Nick Brown and Trade and Industry Secretary Stephen Byers have been firmly in Tyneside's corner