THE Belfast aerospace company Shorts is to sell its armoured vehicle division to British Aerospace Australia for an undisclosed sum. A spokesman said Shorts had signed the heads of, an agreement for the sale of the east Belfast vehicle design centre.

British Aerospace Australia will take over the Shorts division's design capabilities and intellectual property rights. The two firms are already co operating on the Foxhound vehicle, a contender for the Australian Army's Bushranger project, which is aimed at improving mobility in the Outback.

British Aerospace Australia said it expects two vehicles to be selected for trials within the next few months, and that an order could follow next year.

However, the vehicle would be made in Australia. Shorts has not manufactured armoured vehicles for the past decade.