Defence firm General Dynamics UK is to create 125 new jobs at its site in Oakdale after being awarded a £330 million Ministry of Defence contract.
In addition to the new jobs, the contract for a next generation communications system also safeguards 125 existing jobs.
Under the deal, the company will develop a new communications system called Evolve to Open (EvO) as a replacement for its current Bowman system.
EvO will be used to plan, deploy, manage and monitor communications and information for the Army and will allow users to integrate new radios, applications and other system components faster and with greater ease.
It will be used in General Dynamics’ AJAX armoured vehicles, which are being made in Merthyr Tydfil.
Chief Operating Officer of General Dynamics UK, Steve Rowbotham, said: “Having delivered and supported the Bowman tactical communication and information system for the past 15 years from our site in South Wales, this contract marks the next chapter in our history.
“We are delighted that we will continue to develop and grow our existing employee skills base, whilst providing the UK Armed Forces with a leading edge battlefield communication system.”
The Welsh Government’s Economy Secretary Ken Skates AM welcomed the new contract as “excellent news”.
“We have invested a significant amount in research and development projects at General Dynamics which enabled the Evolve to Open programme to help secure this £330m contract, creating 125 new jobs and safeguarding a further 125 in Oakdale,” he said.
“I look forward to visiting the General Dynamics site at Merthyr next week to be updated on latest developments there.”
Defence Secretary Sir Michael Fallon said the deal underlined the importance of Wales to the UK’s Armed Forces.
“Backed by a rising defence budget, last year MoD spent £870m with Welsh businesses helping to build a stronger economy and keep Britain safe.”
The EvO contract is the first to be awarded for the Morpheus programme, which will modernise communications for the Armed Forces across all three services.
The programme is a change in the way the UK Government awards such contracts and allows different companies to bid for different stages. The new way of working is aimed at getting maximum value for taxpayers by not relying on a single company, with the associated risk of delays and overspends.
General Dynamics UK opened its first facility in South Wales in 2001, after winning the contract to deliver the Bowman tactical communications system programme.
Since then, the business has continued to expand and invest in the area, and now has three facilities in Oakdale and Merthyr Tydfil, which is home to the newly-opened Armoured Fighting Vehicle Assembly, Integration and Testing facility.
Islwyn MP, Chris Evans, claimed the announcement showed that the area was “the place to do business”.
Mr Evans said: “I am very pleased to see General Dynamics UK continue to thrive in Islwyn. The new jobs created by this contract will be a real boost to the local economy.
“The success of General Dynamics and many other large and small businesses in the constituency proves that Islwyn is the place to do business.
“I look forward to more good news in the future and the continued growth of new and existing businesses in Islwyn over the coming years.”
More jobs for the local area great news. Lets hope that local people take up these jobs instead of relying on our benfits systrm
Hopefully some or preferably all of the ex employees of Linde who used to occupy the site will get a chance to be re-employed there.
We seem to be doing quite well after we voted to get out of the EU. It seems that nearly every month brings good news for Welsh industry.
Yes good news – Wales seems to be able to buck the National trend – perhaps its because generally the Welsh have a positive ” Can Do “attitude and just get on with it.
I also agree with Edward J Smith – we have a percentage of the population who are happy to rely on the Welfare State – if they were more productive then they and Wales would prosper even more.