A DEVELOPMENT brief for Vosper Thornycroft's site in Southampton must now be drawn up to safeguard local jobs, says the city council.
Economic Development executive member Councillor Julian Price said the city had led a good campaign in support of Vosper's bid for a multi-million pound UK warship contract.
But unfortunately success now meant production would switch to neighbouring Portsmouth.
The city council had accepted this commercial reality - and wanted to ensure new businesses could be encouraged onto the redundant parts of the site.
"There are obvious concerns for the workforce and we do not want to lose them altogether.
"Vospers has said it wants to keep its head office in Woolston and some blue-collar engineering work.
"We must remember that Woolston isn't Vosper Thornycroft and Vosper Thornycroft isn't Woolston," he said.
Cllr Price said a discussion is now needed to look at the future of the site. He added: "We do not want the site left vacant it is no good for the district centre of Woolston if that happens.
"We must have an open debate on future land use," he said.
Lib Dem leader Councillor Adrian Vinson said he hoped it would be a cross-party discussion that would involve the community and local firms.
VT won the chance to build individual sections of the revolutionary Type 45 destroyer following a massive campaign to secure ship building in the south.
VT finance director Chris Cundy told the Daily Echo: "In terms of the future of Woolston, no decision has yet been made.
"It depends what happens over the next two years but, whatever, VT will remain a Southampton-based group. The main shipbuilding facility will be in Portsmouth and certainly the corporate headquarters, if not more, will remain in Southampton."
Mike Budd, the Confederation of Shipbuilding and Engineering Union's Southampton branch chairman, said: "The future of Woolston is uncertain and I am fairly concerned that it could be the end of manufacturing and engineering on the site."
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