The British Ministry of Defence has signed a contract worth £200 million sterling (€319 million) for additional high velocity missiles with Shorts Missile Systems of Belfast, it was announced yesterday.

Announcing the deal in a Commons written reply, junior defence minister, Mr Peter Kilfoyle, said the order would sustain about 550 jobs at the Northern Ireland factory.

The deal will also sustain some 170 jobs across Shorts' subcontractors throughout the UK.

The deal, signed by the Defence Procurement Agency, was welcomed by the Northern Ireland Minister of Enterprise, Trade and Investment, Sir Reg Empey.