THE successor organisation to DERA, named QinetiQ, is likely to be floated on the stock exchange in 2002.

Last year it was agreed that the bulk of DERA, which is Malvern's largest employer, should be part-privatised.

This will happen in July this year, when QinetiQ is set up as a wholly-government owned company. The rest will be retained within the MoD as the Defence Science and Technology Laboratory.

DERA is one of Europe's largest research organisations. The Malvern site employs about 2,400 people in many scientific and technical fields.

A multi-million pound redevelopment of the site, which could offer up to 1,000 more jobs, is due to start this summer.