We think in Rolls-Royce alone it will generate about 900 jobs

Colin Green Rolls-Royce

Rolls-Royce provides the lift systems for the aircraft and the deal will be worth more than �1bn to the company.

Colin Green, president of defence aerospace for Rolls Royce, said the contract guaranteed long-term jobs at the company.

"The programme is expected to last about 25 years and we think in Rolls-Royce alone it will generate about 900 jobs," he said.

The UK had stood to gain whoever won the battle between Lockheed and its rival bidder Boeing as British firms dominated the lists of non-US contractor on both bids.

"This is excellent news for the UK aerospace industry and workers," said Patricia Hewitt, the Secretary of State for Trade and Industry.

"It proves that British companies can compete with the best in the world for the big contracts."

'Ray of hope'

Union leaders were also delighted at the outcome.

"This brings a ray of hope for the troubled aerospace industry," said Roger Lyons, general secretary of the MSF Union.

Martin Baker was building ejector seats for both bidders

"Thousands of UK jobs will be secured which is great news and will offset some of the damage which has hit the sector since the US terrorist attacks."

UK firms could see up to �24bn worth of work over the life of the aircraft, including �3bn in the initial development phase, with BAE Systems and Rolls-Royce among the big gainers.

"Industrially, BAE Systems is now intimately involved in the major 21st century tactical military aircraft programs on both sides of the Atlantic," BAE said in a statement following the decision.

"This really confirms our position as the global solutions provider in airframes and systems for tactical aircraft."

BAE factories at Warton and Samlesbury will work on aircraft structures and wind tunnel testing.

'Full-partner' status

Smiths Industries is guaranteed about $1m (�700,000) in production work per plane, and electronics group Cobham's is supplying fuel-systems.

Meanwhile privately owned company Martin Baker will supply the ejector seats, in which it has long been the world leader.

Britain is the only nation to have been granted "full-partner" status in the contract and has committed �1.4bn in development funds.

The importance of the contract to the UK was underlined by the presence of Britain's Minister for Procurement, Lord Bach, in Washington to hear the announcement.