The new group headquarters for Vosper Thornycroft is to be in Hedge End as the run- down of its long-established Southampton shipyard is set to begin.

VT Group is to relocate its base to new premises at the Botleigh Grange Office Campus with staff expected to be installed by the end of next month.

This is all part of a massive reorganisation of the company that will eventually see the closure of its Woolston shipyard as production moves to Portsmouth.

A For Sale sign is not expected to go up outside the yard in Woolston until next year although initial discussions are already under way between VT, potential developers interested in the valuable waterfront site in Victoria Road and Southampton City Council.

The move to Portsmouth, triggered by VT winning a huge slice of the government contract to build part of the UK's next generation of warship, the Type-45 destroyer, will be phased over time with the first employees switching bases in the spring of 2003.

Ideally VT Group would have preferred to remain closer to Southampton city centre, but the dearth of office accommodation, and in particular, the lack of adequate parking meant it was necessary to look further afield.

A company spokesman said: "VT Group is pleased to have found a head office location close to Southampton. The new corporate headquarters are spacious, have good facilities and are close to major transport links.

"VT House will provide an ideal group headquarters from which to administer our business, which now employs some 10,000 people worldwide. Botleigh Grange was finally chosen because of its accessibility to the M27 motorway and also the offices' surroundings."

Bill Parker, director of commercial estate agents, Goadsby and Harding, who represented the VT Group, said: "The Botleigh Grange unit will serve as an excellent self-contained headquarters office building and with the benefit of 71 on-site car spaces. It is incredibly difficult to find new offices with good parking standards."