A struggling Scottish shipyard has secured 40 jobs by winning a �9m contract

Twelve new landing craft will be built at the Rosyth dockyard in Fife over the next three years, the Ministry of Defence confirmed on Monday.

The announcement came just three days after the yard's owners, Babcock Engineering Services, revealed nearly 400 of its 2,500-strong workforce were being axed following the loss of future submarine refit contracts.

Dr Lewis Moonie, the Under Secretary of State for Defence, said the landing craft contract will also protect the jobs of the yard's sub-contractors.

The minister said eight of the new landing craft vehicle and personnel Mk5 (LCVP) to be built at Rosyth will be carried on board the Royal Navy's new assault ships, HMS Albion and HMS Bulwark.

He added: "This order was won against stiff competition from three other UK shipyards and is very good value for money."

The new vessels are made of aluminium and are expected to have a service life of about 20 years.

An early batch of the vessels is said to have been "highly successful" during operation around the world.