Project Red Dragon would repair all the RAF's aircraft

The purchase of Ministry of Defence land at St Athan, near Cardiff paves the way for jet repair units providing thousands of highly-skilled jobs.

Last month there were fears that Project Red Dragon might not go ahead, following the discovery of an internal report seen by the BBC - but MoD officials stood by their commitment

Welsh Assembly Economic Development and Transport Minister Andrew Davies, said on Monday the land deal marked "a huge leap forward" in the drive to develop an aerospace centre of excellence at the St Athan site.

"The aerospace business park will go a long way to helping us achieve the goal set out in our economic development strategy," said Economic Development and Transport Minister Andrew Davies.

"This deal underlines our belief that Wales can consolidate its position as a world-class leader in the fast-growing aerospace sector."

Part of the 823 acres now owned by the WDA at St Athan will be occupied by a �77m "super hangar" under construction for the Defence Aviation Repair Agency (Dara).

The planned "super-hangar" would cater for 47 fast jets

Work is well underway on the project to construct one of Europe's most advanced facilities for maintaining jet aircraft.

The project will secure the jobs of the 2,000 people already employed on site. It will also give Dara crucial advantage when competing for future work from civil aviation customers.

A number of leading companies in the aviation industry's maintenance, repair and overhaul sector have already expressed interest in the development.

Work by the WDA on a range of studies is nearing completion and the Agency expects to be able to apply in December for planning permission from the Vale of Glamorgan Council.