The purchase comes as Spain is overhauling its military hardware, for which the government has earmarked some 4.2 billion euros, Defence Minister Federico Trillo said.

He told a news conference said the overall investment -- which also includes four submarines, 212 combat vehicles, and a multioperational ship, all Spanish-made -- would create some 7,500 direct and indirect jobs and havea huge enormous industrial and social impact.

"We have opted for a helicopter which seals Spanish and European industrial integration," said Trillo. The machines would also "allow the integration of our aeronautical industry into Eurocopter," an EADS subsidiary created three years ago through a merger of Germany's DaimlerChrysler Aerospace AG, Aerospatiale Matra of France and Spain's CASA.

The Tiger purchase will "create and establish a true helicopter industry (in Europe) with the capacity for conception, development, engineering, production, assembly and testing," said Trillo.

Trillo's French counterpart Michele Alliot-Marie welcomed Spain's decision, calling it at a meeting in southwestern France "a strong sign of Spain's desire to contribute to the creation of a European defence."

At the Paris airshow in June, Eurocopter president Fabrice Bregier said if Spain sealed the deal with his company, Eurocopter could then aim to turn the country into a third major pillar of the European industry after France and Germany.

The Tiger programme was launched in 1989. By year's end France and Germany are both set to begin taking delivery of 80 helicopters, while Australia has ordered 22 for delivery by the end of next year.

Spain expects to start receiving the helicopters next year, with delivery ending in 2011.

EADS, the European Aeronautic Defence and Space Company, is Europe's premier constructor of aerospace material and the second globally after Boeing.

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