Up to 150 Shropshire jobs could be created or safeguarded if defence manufacturing giant BAe Systems lands a £1 billion contract, it was claimed today.

The company is vying for the contract to upgrade the Warrior armoured vehicle and BAe’s Telford plant would benefit most if it is successful.

About 200 people work at BAe’s Hadley Castle Works site in Telford – the company’s centre for the support and upgrading of British Army armoured vehicles.

The contract would also be a shot in the arm for the Defence Support Group plant in Donnington which works closely with BAe.

Shrewsbury-based Caterpillar Defence would also gain if BAe is successful as it would be supplying a new generator for the Warrior.

BAe spokesman Mike Sweeney said today: “The contract to upgrade the Warrior is worth about £1billion.

“We are up against some stiff competition in the bidding and the outcome won’t be known until early next year. If we are successful it would mean about 150 jobs would either be safeguarded or created across Shropshire.

“It is too early to say how many new jobs there would be, however.”

Mr Sweeney said the Warrior contract involved converting the armoured personnel carrier from analogue to digital and fitting a new turret which would enable the vehicles to fire accurately on the move.

Meanwhile, BAe has welcomed the Government’s Strategic Defence and Security Review published this week.

Ian King, chief executive BAE Systems, said: “The US defence market continues to generate substantial business opportunities and we have announced a number of strategic acquisitions in the period which will strengthen our customer support and services activities. And in the UK, the Strategic Defence and Security Review has given us the basis on which to adapt our plans.”

Mr Sweeney added: “We welcome the mention of Terrier and Warrior as essential components of the future Armoured Fighting Vehicle fleets.”

By Simon Hardy