Automotive component manufacturer, Meritor, will create 75 new jobs in the next six months at its Cwmbran site.
The firm, which employs 450 people at the facility, has spent three years developing and testing a new range of air disc brakes for Scania to be launched next month.
Since 2010, Meritor has invested approximately £25m in the Grange Road factory.
Tony Nicol, Meritor general manager, said: “Securing this contract is of major strategic importance to us, and we are hiring an additional 75 people to service it.
“We have already taken a number on board; the remainder will be brought in over the next six months.”
Welsh Assembly Economy Minister Edwina Hart said: “Meritor works in one of our key sectors.
“It is recognised as a regionally important company in terms of employment and its on-going investment at its Cwmbran base.”