Britain's Ministry of Defense has shortlisted three companies for the use of facilities at the Royal Navy's base at Portsmouth.
The use of ship halls at the base is expected to help sustain jobs in the area and is part of the Ministry's refurbishment plan for the base, which will be homeport for the Navy's new aircraft carriers.
"The short-listing of 3 companies is a significant step forward in getting the ship halls back to work." Said Defense Secretary Michael Fallon. "It offers the opportunity to open up the shipyard to more firms providing high-skilled jobs.
"This is an exciting time of regeneration for Portsmouth Naval Base, with the MOD investing ÂPounds 98 million over the past year. This will help ensure that Portsmouth retains its maritime engineering expertise and traditions."
The shortlisted companies are BAE Systems, Burgess Marine, and Magma Structures.
BAE Systems would see its Maritime Services business use the facility to improve the maintenance program of the Royal Navy's Hunt-class mine counter-measures vessels for which it is contracted. Burgess Marine would use the facilities to to build luxury yachts, while Magma Structures would relocate from its current base in Portsmouth to the larger waterside location.
Magma Structures specializes in the design and manufacture of large, complex composite structures for the marine, oil and gas, defense and construction market.
"The MOD has been committed to ensuring that the ship halls are used in the most effective way, to support jobs and growth in the region after another business unit of BAE Systems announced in 2013 that it would move its shipbuilding operations from the site," the ministry said.
No information was given as to when the ministry would make its selection from the three companies.
