BAE Systems is hoping to expand its operations at Barrow in Cumbria after signing an agreement with one of the companies bidding to build nuclear power stations in the UK.

BAE has signed a memorandum of understanding with Westinghouse Electric Company.

Toshiba-owned Westinghouse is bidding for some of the contracts to build the UK's next generation of nuclear power facilities. Although based in the US, it has a policy of using local workers and services where possible when completing projects overseas.

It is now exploring ways in which BAE Systems can help it win and fulfil the UK contracts.

BAE Systems has developed extensive expertise in constructing and installing nuclear reactors through its work on the Astute nuclear-powered submarine programme at Barrow.

It is confident its knowledge can be used in non-marine settings and is talking to Westinghouse about the possibility of becoming involved in the power station sector.

Harry Knowles, chief executive of Furness Enterprise, welcomed the news that BAE Systems could become part of the supply chain for the nuclear power industry.

He told the North West Evening Mail: "I would anticipate we would not be looking at thousands of jobs, but we might be looking at hundreds in the future depending on the number of power stations they are planning to build."

Westinghouse has signed similar agreements with Rolls-Royce and Doosan Babcock.