General Dynamics secures £390m contract extension

Company will reshore assembly, integration and testing for the armoured fighting vehicles

General Dynamics has been awarded a £390 million contract extension to support armoured fighting vehicles, which will create 250 new jobs in Wales.

The contract will extend the current in service support contract for the Scout Specialist Vehicles (SV) to 2024, delivering onshore technical engineering and maintenance from a site in South Wales. As a result, the company has decided to bring to Wales assembly, integration and testing for the vehicles which was previously carried out overseas.

Prime minister David Cameron said: “Today’s decision by General Dynamics to bring the assembly of these world-class armoured vehicles to South Wales is to the credit of the skills and expertise in the local area.

“The 250 additional new skilled jobs at General Dynamics will build on those already safeguarded by the decision to purchase 589 Scout vehicles for our armed forces, ensuring our servicemen and women have the very best equipment to keep us safe.”

The new vehicle, which was designed by General Dynamics, will give the army enhanced intelligence, surveillance, protection, target acquisition and reconnaissance capabilities, and it will be able to defend itself with a highly effective 40mm cannon. It is the army’s first fully digitised armoured fighting vehicle.