A MASSIVE £1.7bn defence communications project is to bring hundreds of jobs to Gwent, the Argus can reveal.

Defence chiefs were today announcing Canadian-owned CDC Systems has won the contract for its prestigious BOWMAN communications project.

The Ministry of Defence communications contract will create up to 500 jobs on a site in Oakdale with potential for many more.

CDC will site its headquarters at Oakdale Business Park, (pictured) and create a £25m communications centre of excellence linked to South Wales universities on the site.

The centre will create 65 jobs - but the CDC Systems headquarters and manufacturing plant will spawn hundreds more. Another firm - IT company CSC Computer Services is also set to move to the area and set up a support centre, creating 100 jobs.

Defence minister Geoff Hoon was due to announce the contract this afternoon. Islwyn MP and Welsh parliamentary secretary Don Touhig has been working to land CDC for Gwent.

He welcomed CDC's plan to create a university-style communications centre of excellence, adding: "These jobs will be particularly welcome especially in the light of the redundancies at nearby Solectron in Cwmcarn."

The Argus understands Solectron has been in talks with CDC Systems over the possible employment of about 50 staff from the US-owned manufacturing plant.

Mike German, AM for South-east Wales, who worked to help bring the deal to Wales when he was economic development minister, said: "Not only is it high-tech jobs for a considerable period of time, but there are also up to 100 research and development jobs, too.