DEFENCE secretary Geoff Hoon delivered a much-needed boost for the Gwent valleys yesterday with the announcement of at least 150 new jobs in Oakdale.

General Dynamics has been chosen to supply the UK armed forces with a £300m battlefield information system called CIP.

Electronics engineers and software developers are now being sought by the company to help fulfill the contract.

This success comes on top of the £1.9bn 'Bowman' contract awarded to General Dynamics last year to supply the forces with a complete digital communication infrastructure.

Mr Hoon said: "General Dynamics has made fantastic progress in the last 12 months and has built a superb UK headquarters here in Oakdale.

"We have every confidence that the company can deliver its technology to a very tight schedule and create a UK centre-of-excellence here in southeast Wales."

CIP will help save lives on the battlefield by putting every infantry soldier in radio contact with his or her commander.

Orders will no longer have to be shouted out under fire by red-faced sergeant majors.

CIP will also connect up the crews of armoured vehicles such as Challenger tanks and ensure that everyone knows what's going on before the enemy does.

General Dynamics invited Mr Hoon to formally open the Oakdale facility which currently houses 250 employees but has space for 400.

He was applauded by staff and senior managers, a number of UK defence chiefs and by First Minister Rhodri Morgan.

It was a welcome boost for an area devastated by the recent loss of manufacturing jobs in the clothing, electronics and aerospace industries.

Caerphilly council leader Lindsay Whittle said: "This company is one of the world's leading defence contractors and its commitment to the area has been first class.

"The fact that it has built a research and development centre means that it will be enhancing the area's skills base for years to come."

Wales Office Minister and Islwyn MP Don Touhig, who helped negotiate General Dynamics arrival at Oakdale, said: "This news confirms the reputation of Wales and the Welsh workforce in international terms.

"The area has taken quite a few employment knocks recently and it is very heartening that top-class jobs are on their way. Watch out Silicon Valley!"