A HEIGHTENED sense of international security after the September 11 terrorist attacks has accelerated demand for defence systems produced in the region.

Joyce-Loebl's defence arm, based in Gateshead's Team Valley, has earned itself a pat on the back from its new owners in the process.

The firm has completed the supply of £2m of defence systems used to confuse incoming missiles or enemy aircraft - for use by RAF, Royal Navy and Army aircraft.

Joyce-Loebl is the UK's leading supplier of such systems and commands about 80 per cent of a market in which demand has quickened since last year's events in New York and Washington.

Screen plc acquired Joyce-Loebl at the turn of the year and at the group's recent annual meeting, chairman Owen Williams told shareholders: "We anticipate that the group overall will meet market expectations at the half year with a particularly strong performance from our latest acquisition, Joyce-Loebl.

"With its established channels, Joyce-Loebl has taken us into defence and strengthened our transport sector presence, two high growth markets for our products and services. The defence side of the business is experiencing strong demand, especially for its electronic warfare products, as the UK and Europe continue to react to international events and on-going security concerns.

"With a strong first half and a firm order book of £6.6m, covering the balance of this year and into next, we are confident of Joyce-Loebl's contribution to our continued strong growth."

Trevor Grugan, director of Joyce-Loebl's Defence Systems Division, said: "We are delighted that we have been able to demonstrate to Screen that their confidence in us has been well placed, as demonstrated by the growth in defence contracts of this type."

The airborne counter measure dispensing system uses an on-board computer on aircraft to identify threats and enact the appropriate defence response, including chaff, a cloud of tiny metal particles to deflect the focus of enemy radar away from the aircraft and firing flares as decoys designed to "seduce" enemy heat-seeking missiles.