General Dynamics UK has been awarded the contract to supply the British Forces with new specialist vehicles.

General Dynamics has won the Ministry of Defence (MoD) contract to build the UK’s new specialist light tank vehicle, beating rival bidders BAE Systems and creating 10,600 new jobs.

The new fleet of medium-weight, armoured fighting vehicles are expected to have a 30-year life, without the need to upgrade its engine or transmission during that period. The Specialist Vehicle (SV) programme will also include the development of the Scout, the vehicle currently used in Afghanistan.

Bob Ainsworth, Defence Secretary, announced the contract winner: “This represents a very important milestone towards replacing the ageing CVR-T and is one of the highest equipment priorities for the Army.

“We are determined to provide the Armed Forces with the capabilities they require, and the Specialist Vehicle decision follows the announcement of our commitment to order an initial batch of 200 LPPV [Light Protected Patrol Vehicles] that we will get to Afghanistan as quickly as possible.”

Around 80% of the company’s ASCOD SV production and manufacture will happen in the UK, mainly in South Wales where General Dynamics UK is based, but also in Scotland, the North of England, the North West, East and West Midlands, and the East and South of England.

Dr Sandy Wilson, President and Managing Director of General Dynamics UK, said: “The General Dynamics UK team won this competition to provide the British Army with its next generation of Armoured Fighting Vehicles (AFV) because it answered the requirement set by the MoD. We offered the best growth potential over the life of the vehicle, the best integrated solution, the best value for money for the British taxpayer and the best deal for the UK Industrial base.

“The ASCOD SV programme is British to its bootstraps, delivering a Military off the Shelf vehicle with British design by British engineers to the British Army while safeguarding or creating 10,600 jobs for British workers.”

The company beat rivals BAE Systems for the contract, which will now make 500 job cuts.

General Dynamics UK is the regional branch of General Dynamics, based in Virginia in the US, which employs more than 91,000 worldwide.