A contract signed to this effect is expected to secure hundreds of jobs in Austria, the company stated.
Under the contract, Austria will receive 34 additional modernised Pandur 6x6 vehicles with significantly higher ballistic and mine protection.
General Dynamics European Land Systems vice-president Dr. Thomas Kauffmann said: “We are very proud to receive this contract from the Austrian Ministry of Defense because it illustrates the confidence and satisfaction of the Austrian Armed Forces.
“Austria is a very important home market for General Dynamics European Land Systems and we value our long-lasting partnership with the Austrian customer.”
The new vehicles will be completely manufactured in Austria, with plans to deliver the first vehicle in 2018.
General Dynamics is adding a new power pack and a modern remotely controlled weapon station to the Pandur vehicles.
Since 1994, Austria is operating 71 Pandur vehicles in the country and on several international peace keeping missions abroad.
Capable of reaching speeds of up to 110km/h, Pandur wheeled armoured vehicle has a length of 5.8m, width of 2.5m, a height of 2.06m and wheelbase of 1.53m.
The vehicle can accommodate a crew of ten members.
Prior to the latest deal, the company secured a contract from the Romanian Armed Forces to supply a fifth batch of additional Piranha III 8x8 wheeled armoured vehicles to the army.