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General Dynamics UK awarded £3.5 billion contract for armoured vehicles

Business, News | | Published: 09:05, Wednesday September 3rd, 2014.

General Dynamics UK has been awarded a £3.5 billion contract by the UK Government to deliver almost 600 armoured vehicles to the British Army.

The Ministry of Defence (MoD) has ordered 589 SCOUT Specialist Vehicles from the Oakdale-based company.

The contract directly safeguards or creates up to 1,300 jobs across the programme’s UK supply chain, with 300 of these at General Dynamics UK’s Oakdale site.

Prime Minister David Cameron, who is due to sign the contract later today, said: “I’m delighted that on the eve of the NATO Summit, we can announce the biggest single contract for AFVs for the British Army since the 1980s.

“These new vehicles are testament to the world class engineering skills in South Wales and across the UK, helping to create the Army’s first fully digitalised armoured vehicles. Not only will they be crucial in helping to keep Britain safe, they will also underpin nearly 1,300 jobs across the UK and showcase the strength of the UK’s highly skilled defence sector.

“With the second largest defence budget in NATO, meeting NATO’s 2% of GDP spending target and investing in new capabilities to deal with the emerging threats we are ensuring Britain’s national security, staying at the forefront of the global race and providing leadership within NATO.”

The SCOUT Specialist Vehicle (SV) consists of six variants and will be delivered to the British Army between 2017 and 2024, alongside the provision of initial in-service support and training.

Secretary of State for Defence, the Rt Hon Michael Fallon MP said: “Today’s multi-billion pound contract is fantastic news for our soldiers in providing them with the most technologically advanced and versatile AFVs to overcome future threats. This is the biggest single order placed by the MoD for armoured vehicles for around 30 years and is an important part of the investment we are making to keep Britain safe. It is also excellent news for the supply chain of this state-of-the-art vehicle and will sustain 1,300 engineering jobs across the UK in key defence industries.”

Kevin Connell, Vice President General Dynamics UK – Land Systems, said: “We are delighted that the UK MoD has awarded us this important contract. SCOUT SV provides essential capability to the British Army to allow it to dominate the battle space for years to come and it secures thousands of jobs right across the UK for at least the next decade. General Dynamics UK and our partners have worked hard over the last four years to develop a world-leading vehicle, and we will maintain that same work ethic to deliver 589 SCOUT SV platforms to the British Army on-time and on-budget.”

SCOUT SV has been developed at General Dynamics UK’s AFV design and engineering centre in Oakdale.

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