ENGINEERING companies will today learn how they can win lucrative business as part of a multi-billion-pound contract to build armoured vehicles for the British Army.

More than 150 companies are expected to attend the industry day, organised by Northern Defence Industries (NDI), taking place at St James' Park, in Newcastle.

They will meet representatives from the Artec consortium, a German-Dutch joint venture that is one of three contenders shortlisted by the Ministry of Defence to develop the first of a series of medium-weight armoured vehicles that will remain in service for up to 40 years.

The programme - known as Fres (Future Rapid Effect System) - is the largest undertaken by the Army, and it is estimated the entire project could be worth up to £16bn,with a further £60bn on later costs.

At the end of the month, the Government will name the company that has won the contract to develop a utility vehicle.

NDI managing director Trevor Harrison said: "The FRES programme presents companies in the North-East with significant opportunities to win substantial and long-term contracts.

"Here in the region we have a wealth of these talents and we will be doing all we can to promote their individual and collective capabilities."