A MARINE engineering company based on Teesside may create hundreds of jobs after securing a Ministry of Defence (MoD) contract.

Imtech UK, of Billingham, has become the first company in the UK to secure a contract on a Royal Navy aircraft carrier building programme.

It has been chosen as preferred partner for the design of air conditioning and heating systems.

Imtech will design the systems, and if the MoD approves the designs, it could then win further work on the heating systems.

Kevin Taylor, Imtech UK sales and marketing director, said: "We are absolutely cock-a-hoop.

"From our perspective if we get through the tests, as it were, it will generate a substantial thoughput of work for the next five to seven years."

He said that Imtech would use its supply chain in the region for work it needed to contract out - which could safeguard hundreds more jobs.

He said Imtech had also started work on a contract to develop the installation design for the ships' electrical systems.

Imtech employs 15 people at its headquarters in Billingham and 100 at its project office in Wallsend, North Tyneside, on the Swan Hunter complex.

Work is expected to begin on then carrier project in 2008, with the vessels - HMS Prince of Wales and HMS Queen Elizabeth - replacing HMS Ark Royal, HMS Illustrious and HMV Invincible.