US defence contractor Raytheon Systems has confirmed it will open a software development centre in Derry, which is expected to create up to 150 jobs over three years. Recruitment has started and more than a dozen employees are expected to be in place before the end of the year.

Chairman and chief executive officer Mr Daniel Burnham said the centre would support a variety of electronics programmes, including air traffic control systems. He said work would also be done on the Airborne Stand-off Radar (Astor) programme, a large British Ministry of Defence contract won in June which includes Belfast-based firm Short Brothers, owned by Canada's Bombardier.

Mr Burnham said group employment in Northern Ireland could reach 1,500 jobs if the company won a separate Ministry of Defence contract to build a new missile system.