THE Northern Defence Industries (NDI) group yesterday stressed the importance of billions of pounds-worth of Ministry of Defence (MoD) projects to the future of the North-East economy.

The organisation, which represents companies working in defence industry supplies, said it would do all it could to make sure hundreds of companies across the region would get work on projects that include the Future Rapid Effect System (FRES) and the CVS aircraft carrier.

How closely the future of troubled shipbuilder Swan Hunter is tied to winning a share of the £3bn aircraft carrier project has been widely publicised, but NDI managing director David Bowles said it was important not to forget the region's smaller companies, which are also relying on work.

"It is not just about the big players like Swan Hunter, it is about the hundreds of other companies in the region who play a part," he said.

"These smaller companies are not reliant on the likes of Swan Hunter getting the work, but on securing contracts from whichever company the MoD decides to award the work to.

"The importance of the NDI is to make sure these companies are in the procurement process and we will do everything we can to ensure they win contracts."

The North-East is also hoping for its share of work on the FRES project, which could be worth up to £6bn. The scheme will improve the deployment of UK land forces by developing armoured vehicles that are lighter and easier to move by air.

"It will be a new generation of fighting vehicle using new technologies, some of which haven't even been invented," said Mr Bowles.

The NDI expects that when the manufacturing phase begins in 2008, many North-East companies will be involved.

Presently, about 8,000 people in the region are employed in the defence industry in 1,000 companies, which together contribute significantly to the region's economy, with a collective turnover of more than £800m.