Jobs boost at Valleys plant

9:14am Saturday 10th May 2008

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MORE than 100 new jobs are set to be created in Gwent after an American company was awarded a multi-billion pound contract with the MoD.

General Dynamics, which has plants in Newbridge and Oakdale, was named as the provisionally preferred bidder to supply the army with the Piranha V, a heavily armoured troop conveyor.

The contract, thought to be worth around £6 billion, is part of an overall £16 billion procurement deal.

The move will safeguard the existing 850 jobs at the two Gwent sites, and the company has launched a recruitment drive to bring on skilled engineers, with at least 100 new jobs set to be created by the move.

It is hoped the first 100 vehicles of the new fleet will be rolled out by 2012, the first in the army's programme for a new force of battlefield armoured vehicles.

The Piranha V will replace parts of the existing fleet of the army's Saxon, FV 430 and CVR(T) vehicles.

General Dynamics, a US-owned company, is also in the running to be the selected company to oversee the building of the Future Rapid Effect System (FRES) fleet, which could see a further cash injection into Gwent.

The company will is set to enter into negotiations with the MoD to establish the range of development work needed.

President and Managing Director of General Dynamics, Dr Sandy Wilson, said: "We are delighted that Piranha V is the British Army's choice for the FRES utility vehicle."

MP for Islwyn, Don Touhig, welcomed the news, saying it would be "hugely beneficial for the community."

He added: "I'm delighted they are the provisionally preferred bidder and I welcome the fact this will create highly skilled, highly paid jobs."