ELECTRONICS giant Joyce Loebl has answered an army SOS for better communications by tabling a £40m bid to supply the forces with radio equipment.

The Gateshead-based defence and transport company, which has recently been in the news for using its military expertise in civilian markets, is now turning its commercial expertise to military advantage.

The order could see the company providing every frontline British soldier with a personal radio for short-range communications, and safeguarding the jobs of 115 people.

The move follows recent experiences in Kosovo that have highlighted the need for improved communications techniques and equipment. The Joyce-Loebl solution is intended to meet the increasing demands of the modern battlefield environment.

Trevor Grugan, director of defence systems at the firm said: "Our recent diversification into non-defence markets is teaching us valuable commercial lessons which we are increasingly able to put to use when bidding to the Ministry of Defence.

"The MoD itself is increasingly moving towards 'smart procurement', meaning that it is following a more commercial agenda which has become second nature to us since we entered the highly competitive rail and transport market.

"One of our strengths has always been our ability to 'fight above our weight' and we have proposed an excellent solution to the Army's requirements."

In addition to radios, the proposed Army deal also includes headsets, various ancillary items and a support package lasting some ten years.

The initial supply package will be worth up to £20m and ongoing support and provision of spares could take the total value to around £40m.

Competition for the Army radio business is likely to be fierce, with Joyce Loebl taking on some of the biggest names in the defence equipment world.