Two Ministry of Defence contracts worth £364 million have been secured by Oakdale defence firm General Dynamics UK.
The five-year contracts to provide design, engineering and logistic support for the Bowman radio system will secure 140 skilled jobs at the plant.
Bowman radios are used by the Army, Royal Navy and Royal Air Force and allow personnel on land, at sea and in the air to communicate on operations around the world.
Steve Rowbotham, Chief Operating Officer of General Dynamics UK, said: “With our proven supply chain and support infrastructure, General Dynamics UK is uniquely placed to successfully deliver these contracts in parallel and ensure that the British Armed Forces have the security of supply and support as they continue to meet operational requirements around the world.
“We are delighted to be able to continue with the successful partnership that has delivered world-class secure tactical communications to the British Armed Forces, building on this unique UK sovereign capability.”
Minister for Defence Equipment, Support and Technology, Philip Dunne, said: “For more than a decade, Bowman radios have played a vital role on operations, helping our personnel communicate sensitive information.
“I am delighted these significant contracts will protect 140 skilled engineering jobs in South Wales, allow us to deliver better for value for money for the taxpayer, and most importantly ensure personnel on operations have the secure equipment they need.”
Secretary of State for Wales David Jones has also welcomed the announcement
He said: “This is great news for Wales and a boost for the Welsh economy.
“The investment we see from companies such as General Dynamics UK is testament to the skills and talents of the workforce in Wales.
“It is also further proof that as part of our long term economic plan we are continuing to see encouraging signs of growth and recovery in the Welsh economy coming just before the NATO summit in Newport in September.
“The summit will, of course, provide a huge opportunity to promote Wales to the world as a fantastic place to visit and do business.”