BAE clinch jeep deal; pounds 28m contract.

Byline: By GARETH DEIGHAN Industrial Reporter

ENGINEERING giants BAE Systems have clinched a pounds 28m deal for army jeeps.

The former Vickers Armstrong plant in Newcastle is delivering 401 armoured Panther jeeps to the MoD - a contract which ensures the jobs of its 640 staff until summer next year.

And yesterday the company announced a further contract - worth pounds 28m - to maintain the tanks while they are in service.

The company, who have their manufacturing base in the city on Scotswood Road, have already completed 217 of the 401 on order.

BAE Systems Land Systems support director Ian McNeeney, said: "This contract sets the standard for all future support arrangements for military vehicles.

"It represents a new way of contracting with the MoD in the land sector and includes a mechanism to continually improve vehicle reliability and service delivery to provide a more responsive, lower-cost service to the front line."

The contract requires BAE provides 90% of materials plus technical support services to the front line - including field support technicians who could be deployed with Army units.

And if there are any elements of the Panther need to be redesigned, it will be staff from the Newcastle site who step in.

Col John Ogden, light armoured systems team leader at Defence Equipment and Support, said: "Following successful reliability trials, BAE Systems has delivered 217 of 401 Panthers to date.

"This achievement is a tribute to both the quality of the vehicle and the effectiveness of the working relationship between the MoD and BAE Systems project teams.

"We are confident that soldiers on the ground will like this new capability and appreciate the benefits of its support arrangement."

CAPTION(S):

WINNER: One of the multi-purpose Panther armoured jeeps