Skanska UK has won a contract from the UK Ministry of Defence (MoD) to deliver a storage facility for the British Army land vehicle fleet.

The £259m ($326.48m) contract will see the company work together with technical services provider Mace on the Vehicle Storage Support Programme (VSSP).

The programme is intended to deliver new land vehicle storage solutions for the Army and minimise maintenance requirements.

The facility will be constructed at Ashchurch, Tewkesbury.

The project will involve demolition and site regeneration, as well as updates to the current buildings and new infrastructure.  

On completion, the site will offer controlled humidity environment (CHE) storage for 4,100 vehicles.

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VSSP Senior Responsible Owner Belinda Lunn said: “We are very excited to be working with Skanska to deliver this project, which will bring the Ashchurch site back up to full operating capability.

“Whilst the majority of the Army’s vehicle fleet is either on, or training for operations, a sizeable fleet is centrally stored to ensure that they are ready to deploy when required. VSSP will re-develop this centralised facility and deliver a modern, sustainable storage solution that ensures operational readiness of the Army’s vehicles by minimising the need for maintenance.”

Construction works will begin in September this year and are anticipated to be fully completed by 2027.   

The project will provide employment opportunities for up to 400 people and support ten apprenticeships. It will also make use of modern construction methods to lower carbon emissions.

The contract was facilitated through the Defence Infrastructure Organisation (DIO).

DIO Army Major Projects and Programmes programme director Warren Webster said: “This important work will future-proof the Army’s vehicle storage and maintenance facilities at Ashchurch for years to come, and we look forward to continuing to work with our partners in the Army, Skanska, and Mace to support this significant capability improvement.”