A US defence firm which has a manufacturing base in Newbridge and Oakdale has secured a £4billion contract which will create 200 jobs.
General Dynamics has won the Government contract to build 600 new light tanks for the British Army.
The deal will secure 250 posts at the company’s sites in Newbridge and Oakdale and will also create a further 200.
Welsh Secretary Peter Hain said: “Today’s announcement is a win, win for Wales.
“This contract, worth almost £400m to the supply chain in Wales, will create 200 more highly skilled engineering jobs in south-east Wales and safeguard another 250 existing Welsh jobs.
“And once in service these new specialist vehicles will bring significant benefits for our troops serving abroad in places like Afghanistan, such as improved protection, greater firepower, longer range sensors and sighting systems, and a higher level of reliability.”
First Minister Carwyn Jones and Deputy First Minister Ieuan Wyn Jones said in a joint statement : “We are delighted that General Dynamics – one of the top defence companies in the world – has won this major contract.
“This announcement will not only create and safeguard the highly skilled jobs at the company’s state-of-the-art plants at Oakdale and Newbridge, but sends a very clear message that Wales has the skills to manufacture high quality and internationally competitive products.”
The news has also been welcomed by Islwyn MP Don Touhig.
He said: “This is excellent news. Since coming to Wales General Dynamics UK (GDUK), have already created over 800 jobs on two former colliery sites here in Islwyn.
“Not only will this announcement safeguard jobs and create 200 more right here in Islwyn it also underlines the commitment of this government to providing the right kit for our troops.”
Conservative South Wales East AM William Graham also welcomed the news.
He said: “This contract will inject significant economic benefits to South Wales East.”