Permali Gloucester has secured a £15m contract from General Dynamics European Land Systems to supply composite armour materials for the British Army's Ajax vehicles.
Under the seven-year contract, the company will provide the key components of ballistic protection measures used in the vehicles.
Permali recently carried out an R&D programme, as well as invested £300,000 in machinery to manufacture the new materials.
It is also investing a further £1m to convert factory processes for a more energy-efficient heating system.
Permali managing director Colin MacAdam said: "This is a seven-year contract and the result of a great deal of hard work by many employees.
"This vehicle sets the standard for the use of the latest technologies - there were many new requirements that had to be achieved.
"Against international competition, we have demonstrated that Permali has developed world-leading composite technology."
General Dynamics Land Systems-UK is delivering 589 Ajax vehicles to the British Army, under a previously announced contract.
UK Defence Equipment and Support organisation Land Equipment director major general Robert Talbot Rice said: "The Ajax vehicle is at the heart of the UK's new Strike Brigades, giving our Armed Forces the ability to respond rapidly and effectively across a huge variety of terrains.
"The signing of this contract means that Permali will have a key role in supplying world class protection for the British Army's fleet of next-generation fighting vehicles."
In a written statement to the UK Parliament, Minister of State for Defence Frederick Richard Penn Curzon had revealed that nearly 100 Ajax vehicles will be manufactured in Spain for the British Army.
Image: General Dynamics' Ajax vehicle. Photo: courtesy of Pressat / Permali Gloucester.