THE first details of the work super-yacht manufacturer Palmer Johnson (PJ) plans to carry out in Hampshire have emerged.

The US firm plans to start work on prototypes of a new range at Hythe later this year and intends to build only the largest of its vessels here, starting with a 51m yacht range.

As previously reported by the Daily Echo, more than 800 jobs are to be created in the county by the arrival of PJ, which plans to create boat building facilities in Hythe and, later, on the former VT site at Woolston, Southampton.

A special PJ design team has been putting together new concepts for the UK facilities to build at a base in Cowes on the Isle of Wight for more than a year.

Initially these will be developed at the former military base RAF Hythe, where PJ has taken a five year lease from regional development agency Seeda. It bought the site for £5m to preserve it for marine business. A further £1.5m is expected to be spent improving existing facilities, which include a 950 tonne marine railway system and a 30,000 square foot construction space.

The historic US brand is the first industry name to emerge in connection with the Woolston site, which has a section set aside for business use as well as plans for 1,600 homes.

PJ intends to build a 20,000 square metre construction facility there and will have the capacity to build vessels up to 100m long.

The construction work is scheduled to be complete late next year, readying the site for yacht building by 2010 and making the first launch a possibility by 2011.

No decision has yet been taken by Palmer Johnson on what will happen to the Hythe site when Woolston is up and running.

A spokesman said: "Palmer Johnson will be keeping options open for the Hythe Marine Park.

"For a period of time, Palmer Johnson will be operating a twin location facility. Once the new factory is fully operational in Woolston the existing facility in Hythe could be used to increase production, or to manufacture new ranges. All options will be continually reviewed, in a fast evolving market."

The expansion into Europe is on the back of a surge in demand for luxury yachts that has seen PJ double the capacity of its Sturgeon Bay, Wisconsin, base. Its order book is full until 2010 with 14 yachts of more than 36m.