General Dynamics Land Systems-Canada is to produce 24 light armoured vehicles (LAV-A2) in various configurations for the US Marine Corps.
The eight-wheeled amphibious vehicle is capable of conducting offensive and defensive operations in support of the marine air-ground task force.
The vehicle provides armour protection, and is equipped with an automatic fire-suppression system for crew protection and a robust suspension for mobility.
The $35.5m contract was signed through the Canadian Commercial Corporation, a Crown Agency of the Canadian Government.
Work will be carried out at the company's facilities in London, Ontario, and is scheduled to be completed by April 2012.
The US Marine Corps have ordered 207 LAV-A2 vehicles since 2007. 800 units of an earlier version of the vehicle have been in active service with the marine corps since the 1980s.