The Largs Bay is one of two vessels being built by Swan Hunter

The Largs Bay is the first of two ships being built by the yard for the Royal Fleet Auxiliary.

The huge ships are capable of moving troops, vehicles and equipment, and can also deploy them into battle.

The Royal Navy contract is worth �130m, and the landing craft is being seen by many as evidence of a revival of shipbuilding on the Tyne.

The superstructure of Largs Bay was built at the company's Teesside, before being brought by sea up to Tyneside.

Work has already started on the second ship, the Lyme Bay, on Teesside.

The Largs Bay is the first ship to be launched from the Wallsend yard since the ferry Pride of the Tyne was lowered into the water by crane in 1993.

Rougher weather

The new ships, each 16,100 tonnes, are replacements for the Sir Galahad and Sir Tristram, which both saw service during the Falkland's conflict.

When Swan Hunter went bankrupt in 1992, it looked as if there was no future for the yard.

It had lost a contract to build three warships for the Emirate of Oman in the Gulf, and was �60m in debt.

For four years the yard stood empty until, the day before it was due to be auctioned off for scrap, it was bought by the Dutch firm THC.

Japp Kroese, chief executive of Swan Hunter, said: "This is a fantastic day for everyone at the shipyard.

"We have taken a company out of the ashes and all we can hope for now is a continued prosperous future for our workforce."

Compared with their predecessors the two ships will carry more than twice as many vehicles and troops.

Using their sterns dock for landing craft and flight deck for helicopters, they will be able to offload in rougher weather twice as quickly.

The flight deck can accommodate two Merlin or Chinook helicopters, and a hanger could be fitted in future if required.