Defence contractor Thales has been named as the preferred bidder on a programme to supply pilotless "eye in the sky" aircraft for the British armed forces.

Work on the £800 million Watchkeeper programme will be carried out at the French-owned company's UK headquarters in Crawley.

About 2,100 UK jobs will be created or sustained as a result of the contract win, according to Thales, which employs 3,000 people in Crawley.

The company beat off competition from a consortium led by US weapons maker Northrop Grumman.

Defence Secretary Geoff Hoon told Thales chiefs they had won the contract at the Farnborough Air Show. A decision had been expected later this year.

Mr Hoon said: "Our evaluation of the two bids has been extremely thorough and we have identified Thales as offering the best value for money and potential to deliver the required capability."

The Watchkeeper programme will supply the British Army with a fleet of unmanned aerial vehicles (UAVs), also known as drones, for military surveillance.

It will allow the armed forces to mount reconnaissance and surveillance operations over a battlefield area without putting lives in danger.

Images will be relayed quickly to commanders on the ground. The Ministry of Defence (MoD) believes drones will play an important role in future conflicts.

The unarmed planes can cruise at between 5,000ft and 10,000ft and could be used to help clear minefields.

Alex Dorrian, chief executive of Thales UK, described the award as a "strong vote of confidence" in the company, which must now negotiate a contract with the MoD.

Crawley MP Laura Moffatt said: "This is great news, not just for Crawley but also for Sussex. Let's not forget, a lot of people commute into the town from across the region.

"Crawley itself is a high-employment economy but quite a low-wage one.

"A contract like this will attract a lot of degree-entry workers, which is what we need, and the jobs are sustainable.

"The work from this contract will go on for years, which is why so much work was put into making sure Thales won.

"It should have a real stabilising influence on Thales - we are all delighted about it."

Speaking from Farnborough, Thales spokesman Guy Douglas said: "We have had about 150 people in Crawley working on this bid for the last five years.

"They have had their heads down working extremely hard on this project and I imagine there are a lot of people back at headquarters walking around with smiles on their faces."

Work on the Watchkeeper project will be centred around Crawley. Other sites set to benefit include those in Somerset, Scotland and Middlesex.

Watchkeeper is due to enter service with the armed forces in 2006.

Thales employs about 12,000 across the UK.

Thursday July 22, 2004