A VALLEYS company is bidding for a £2 billion contract to provide the British Army's next generation of reconnaissance armoured vehicles - and hopefully improve soldiers' chances of surviving any attack on them.

General Dynamics UK, which has bases in Newbridge and Oakdale, is putting together a bid to supply ASCOD Infantry Fighting Vehicles to the armed forces.

A General Dynamics spokesman said the new version of the vehicle will have the "best mobility in its class, with tremendous growth potential for optimum survivability for British troops against the threats of the future."

Dr Sandy Wilson, General Dynamics president and managing director, said: "We're offering a new solution with best-of-class technology and the confidence that comes from our track record of being trusted to deliver."

The firm has selected Lockheed Martin UK as one of the only UK-based companies with the knowledge, skills and experience to integrate a telescopic weapon system into the vehicle.

The spokesman said details of where the vehicles would be built were sensitive, but a successful bid would be a "major win" for the 850 Gwent employees, helping safeguard the posts.

He added that the impact on jobs in Gwent will depend on what contracts are awarded, but anything will be a "major boon" for the Welsh team.

General Dynamics was established more than 40 years ago and secured a £2.4 billion contract to provide hi-tech communications systems to the Ministry of Defence in 2001.

In July, the company was awarded two defence contracts worth £231 million to produce tactical communications systems.