MUIRHEAD Vactric, a subsidiary of the Silvermines group, has been selected by TAURUS Aerospace to supply parts for the KEPD 350 cruis missile.

The TAURUS KEPD 350m missile is a leading contender in the £650 million sterling competition to supply the RAF requirement for long distance cruise missile which can be launched outside a battle zone area.

If the missile was chosen by the British Ministry of Defence, it could mean £7 million in extra sales over a number of years, Silvermines said.

The main partners in TAURUS Aerospace will be Bofors of Sweden, Daimler Benz Aerospace of Germany and a major British aerospace company.

Mr Clem Jansen, group managing director of Silvermines, said the main benefit was the potential orders Muirhead would get Daimler Benz. Muirhead was chosen, not on price but on technology, he added. There is continuing dialogue between Muirhead and Daimler Benz.

The expectation, he said, was Muirhead to become a major supplier to the German company and, as a member of the TAURUS team, Muirhead stands to gain not only from the British contract but also from export opportunities estimated at over £500 million.

Muirhead is involved in precision motion technology for design and manufacture It employs 220 people.