BAE Systems will upgrade and build CV90 armoured combat vehicles for the Norwegian Army under a contract worth approximately £500m despite the planned closure of its Newcastle factory.
It was announced on May 31 that the Newcastle factory, which makes Terrier vehicles for the Army, will close by the end of 2013.
A spokesman for BAE said “Even if the contract was agreed before the announcement of the Newcastle closure, there would have been no change in this decision. The CV90 is a Swedish design and has always been built in Sweden and we would not change that. Newcastle has no experience in the manufacture of this product.”
The company will upgrade Norway’s existing 103-vehicale CV9030 fleet and build new chassis for 144 CV90s. The new vehicle fleet will have significantly enhanced protection, survivability, situational awareness, intelligence and interoperability.
Petter Jansen, managing director at the Norwegian Defence Logistics Organisation said: “This is one of the largest Army investments and an important part of the Norwegian Army modernization plan.”
The first CV90 was delivered to Sweden in 1993, and this programme will increase the number of vehicles ordered to more than 1,200.
