THE North-East was last night hoping for an economic spin-off from the awarding of the world's biggest defence contract.

American companies Boeing and Lockheed Martin were awaiting the verdict on who will be chosen to build the Joint Strike Fighter, worth £280bn over the next 20 years.

The contract, being awarded by the US government, will result in £2bn of work for British firms, whoever wins, and safeguard about 9,000 jobs.

A number of suppliers in the North-East could benefit from the work.

Aerospace Systems and Technology 2000, of Consett, Coounty Durham, which has previously won contracts from both Boeing and Lockheed, said it was hopeful of some work.

A spokesman said: "The aerospace industry needs a lift after the events in America on September 11 - and this could provide it.

"Boeing and Lockheed have industrial participation agreements with the UK, and the contract will achieve opportunities for work."

Paul Nowak, of the TUC in the North-East, said: "We have had some big job losses and this could be good news not only for the UK, but for the North-East as well."

Rolls Royce has been chosen by the bidders to develop technology to allow the fighter to take off vertically.

But the work will be carried out largely in Bristol, and not at its operations in Newcastle and Sunderland.