Rheinmetall BAE Systems Land (RBSL) has received an £860m subcontract from Rheinmetall Landsysteme for the UK Ministry of Defence’s (MoD) Mechanised Infantry Vehicle (MIV) programme.
Under the programme, over 260 Boxer vehicles will be produced by RBSL.
The company will build the Command and Special Carrier variants at its facility in Telford, Shropshire.
In December last year, a £2.3bn MIV contract was awarded to Rheinmetall and KMW consortium, ARTEC.
This contract is expected to generate and sustain more than 200 skilled jobs in the region. Over 1,000 jobs will be created for the entire programme.
The MIV programme looks to source 60% of the contract, by value, in the country.
The company is part of the MIV Joint Procurement Team, which is in talks with suppliers from England, Wales, Scotland and Northern Ireland, to ensure the target is met.
RBSL has announced that it will invest £20m in its Telford site to boost infrastructure, offer advanced manufacturing facilities and provide training for capabilities such as welding.
RBSL MD Dr Marco Nöding said: “RBSL’s subcontract is a great step forward after months of hard work. Working with Rheinmetall and other partners, RBSL is bringing new skills and technologies into the business and the UK supply chain.
“I feel proud that RBSL has the opportunity to support British industry by working with UK-based suppliers, especially given the extraordinary circumstances the UK faces as a result of Covid-19.
“The next step for us is to formalise our community of suppliers and ensure the British Army receives their new vehicles manufactured to the highest standards.”