THE Matra BAe Dynamics factory at Lostock is to be known by another set of initials in future.

Consolidation in the European defence industry has resulted in it becoming MBDA.

The Lostock operation, which employs about 420 people, is now part of a major company employing 9,500 missile workers in Britain, France and Italy.

MBDA is a joint venture involving the British BAe Systems company, the European Aeronautic Defence and Space Company (EADS) from France and Italy's Finmeccanica.

MBDA will be second in size behind the American Raytheon company and will be poised to compete successfully for orders worldwide.

Last year's government decision to arm the RAF's 232 Eurofighters with the £1 bn Meteor missile system helped safeguard the future of the Lostock site.

Development is to take place at the firm's Stevenage plant and Lostock is likely to be involved in assembly, integration and testing from 2006/7 until 2112 at the earliest.