Contracts to build two Royal Navy aircraft carriers have been signed.

HMS Queen Elizabeth and HMS Prince of Wales will be the "largest and most potent warships" to be designed and built in the UK.

The Ministry of Defence (MoD) said in a statement today: "The contracts, worth in the region of £3 billion, were signed with a new UK maritime joint venture, formed by BAE Systems and VT Group, called BVT Surface Fleet, and the Aircraft Carrier Alliance onboard existing aircraft carrier and Fleet Flagship HMS Ark Royal at Portsmouth today, Thursday 3 July 2008."

The MoD says that the future aircraft carriers will "dramatically improve the UK's ability to "project expeditionary air power over the coming decades" and will be a "highly versatile and potent joint defence asset".

BVT Surface Fleet will be a key member of the Aircraft Carrier Alliance of companies which will construct and assemble the new carriers.

It is understood the project will create more than 2,000 jobs in England's shipbuilding industry.

Portsmouth is expected to be the biggest beneficiary, with 1,200 posts at ship builders VT underlined in the move.

It is reported that 970 jobs will be created or sustained in Barrow-in-Furness, Cumbria and Newcastle upon Tyne.

Defence Secretary Des Browne said: "This is a historic day for everyone in defence. The two aircraft carriers will provide our forces with the world-class capabilities they will need over the coming decades. They will support peace-keeping and conflict prevention, as well as our strategic operational priorities."

First Sea Lord, Admiral Sir Jonathon Band, said: "I am delighted with today's news that the contract for the two new aircraft carriers, to be named HMS Queen Elizabeth and HMS Prince of Wales, has been agreed and signed.

"These ships, with their embarked aircraft, will provide the UK with a potent and powerful aircraft carrier force that will deliver air power in support of the full range of future operations at sea, in the air and on land."

Alan Johnston, Chief Executive Officer of BVT Surface Fleet, said: "This is an important announcement for BVT and for the UK maritime industry at large, guaranteeing work for years to come across the country.

"We are looking forward to delivering these very important ships to the Fleet in the next decade and intend to begin construction work later this year."

The carriers will displace 65,000 tonnes at deep load, be around 280m long and 70m wide on the flight deck, accommodate around 1,500 personnel and operate a mix of up to 40 aircraft.

The carriers are expected to enter service in 2014 and 2016 respectively. Once they enter service they should remain in the fleet for at least 30 years.

(DS)