BAE Systems has secured a new $818 million (£611m) contract from the US Army to produce more Armored Multi-Purpose Vehicles (AMPVs), taking the total value of orders for the programme to almost £2.46 billion.
According to Defence Industry Europe, the latest deal will see the defence giant produce another batch of the tracked armoured vehicles, which are being used by the US Army to replace its ageing fleet of M113 armoured personnel carriers.
The number of vehicles covered by the latest contract has not been disclosed.
Deliveries are due to be completed by May 31, 2030, with the work funded through US fiscal years 2025 and 2026 appropriations and special funds.
The procurement is being overseen by Army Contracting Command at Detroit Arsenal in Michigan.
The company has a major footprint in the North West, including its aerospace sites at Warton and Samlesbury in Lancashire, where it employs thousands of people on programmes including the Eurofighter Typhoon and F-35.
Production, however, will take place at BAE Systems' facility in York, Pennsylvania, extending work on the AMPV programme through the end of the decade.
The AMPV is based on components from the M2 Bradley infantry fighting vehicle and was selected by the US Army in 2014 after competing against proposals from General Dynamics Land Systems and Navistar Defense.
The Army began replacing its M113 vehicles with AMPVs in 2016.
A programme plan published in 2015 called for 2,897 vehicles, at an estimated cost of around £8.02 billion based on current exchange rates.
The AMPV programme covers five main variants designed for different battlefield roles, including general-purpose operations, medical evacuation, medical treatment, command and mortar-carrying missions.
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The vehicles are designated M1183 GP, M1284 MEV, M1285 MTV, M1286 MC and M1287 MCP.
BAE Systems and the US Army are also exploring additional uses for the platform.
Work is under way on an engineering-support vehicle, while BAE Systems has proposed fitting the AMPV with a medium-calibre cannon turret for use in an infantry fighting vehicle role.
The latest contract further strengthens BAE Systems' position in a major US Army vehicle replacement programme, with production set to continue into the next decade.
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