WORK is well under way to bring almost 500 jobs to Gwent as part of the £1.7bn Ministry of Defence's Army communications contract.

Computing Devices Canada (CDC), which won the contract against stiff competition, has staged a recruitment fair at Oakdale where it is setting up its UK headquarters. And the North American firm is to axe its UK title CDC in favour of a new name, General Dynamics UK Limited.

The firm says GD UK is being formed specifically to manage the MoD Bowman Army communications programme and to oversee all of the company's work in the UK. The Bowman £1.7bn programme is the UK MoD's requirements for a digital voice and data communication system for the armed forces.

Bowman will replace the obsolete 25-year-old Clansman radios. Bowman will include a working command and control system for land.

A spokesman said: "The name CDC Systems UK limited was used in the competitive stages of Bowman and will now no longer be used. The new company headquarters will be in south east Wales (Oakdale) with continuing operations in Hastings, Chorley and London."

Larry Johnson, 58, will be the managing director of the new company and will be based in South East Wales.

The new business unit becomes one of five of the General Dynamics Group. As well as General Dynamics UK setting up its headquarters in Oakdale, the firm's parent company is also planning a communication centre of excellence in Gwent. The £25 million centre of excellence will be linked to Wales universities and the MoD.

General Dynamics, which has its global headquarters in Falls Church, Virginia, employs approximately 49,000 people and anticipates 2001 sales of approximately $12 billion. The company has leading market positions in information systems, shipbuilding and marine systems, land and amphibious combat systems, and business aviation. General Dynamics UK's site in Oakdale will include space for research, engineering and manufacturing.