THE deal to build two giant aircraft carriers in Scots shipyards edged closer today with the signing of a £35million contract to modify Rosyth dockyard.

Sections of the super carriers will be built at BAE Systems at Govan and Scotstoun, and taken to Rosyth for assembly.

Today, in a clear sign that the contract is expected to be finalised soon, a construction deal was signed by Rosyth's owners Babcock Marine and building contractors, Kilsyth-based Edmund Nuttall.The £35m contract covers key modifications to the dock, including the widening of the direct entrance.

Another £15m is to be spent on a Goliath crane, the biggest of its type in the UK, and hauling gear to lift the huge carrier sections.

Defence Secretary Des Browne said: "I'm delighted to see this boost for the maritime industry in Scotland, and jobs for Scottish workers.

"This is a significant investment in shipbuilding in Rosyth and a symbol of our commitment to the two new aircraft carriers, which will be the largest ships ever sailed by the Royal Navy."

Babcock International's chief executive officer Peter Rogers added: "The award of this contract is the culmination of a great deal of hard work by the Babcock Marine team and Edmund Nuttall, together with our colleagues in the Aircraft Carrier Alliance including the MoD, to ensure the Rosyth site is ready to play its part in what is the most exciting and largest defence project for many years."

The MoD announced its plans for the two 65,000-tonne carriers last July, but delays in signing the final contract led to fears that there could be redundancies at the Clyde yards.

As the Evening Times reported last month, shop stewards at the Clyde yards were worried about a "serious" production gap if the contract wasn't signed soon.

An MoD spokeswoman said today that they were working with the companies involved in the joint venture to build the carriers to ensure the contracts would be placed "as soon as it is practical".