THE announcement of a 6 million sonar contract being awarded to Rogerstone-based TTems is the latest boost for the south-east Wales defence sector.

Over the last three years defence has become one of Gwent's fastest-growing industries. It's anchored by two major players in General Dynamics, at Oakdale, and Cogent Defence and Security Systems, in Newport.

General Dynamics is powering ahead thanks to the MoD's 2bn Bowman contract. The firm is recruiting engineers and aims to take its workforce from 250 people to 400.

Cogent now employs 700 people at two sites in Newport, and is working on another 2bn contract for satellite communications called Skynet 5.

Last summer we reported how Newbridge-based electronics outfit Axiom had won a 10m defence contract to make parts for tank driving simulators.

The contract will run for ten years and could eventually be worth as much as 15m to the firm.

It has been responsible for increasing Axiom's workforce from 200 to 260.

The only reverse Gwent has suffered in this sector occurred last summer, when Northrop Grumman lost out in a bid for another 800m military communications contract.

The US firm had promised to build a factory near General Dynamics at Oakdale, had it been successful. It lost out to French competitor Thales.