A new deal will see engineers in the north of England provide transmission, engine and cooling systems in the production of the Army's new Boxer vehicles.
About 250 Powerpack blocks will be prepared by David Brown Santasalo (DBS) in Huddersfield, West Yorkshire, as part of a £30m contract with WFEL and Krauss-Maffei Wegmann (KMW).
Set to replace the Warrior, the Boxer is an 8x8 wheeled, all-terrain, armoured transport vehicle, due to become the new British mechanised infantry vehicle (MIV).
A decade-long supply deal will begin in autumn 2022 and will see DBS provide Powerpack units to WFEL's Boxer production facility in Stockport.
The arrangement is part of November 2019's £2.3bn contract signed by ARTEC, a joint venture between KMW and German manufactures Rheinmetall, to deliver at least 500 Boxer vehicles to the Army.
The vehicles will be manufactured in the UK, with production subcontracted equally between WFEL and Telford-based Rheinmetall BAE Systems Land (RBSL).
Watch: We got a closer look at the Boxer in 2019.
The Powerpack contract with DBS and its wider supply chain will sustain and create at least 20 jobs in the north of England, according to WFEL and KMW.
WFEL managing director Ian Anderton said: "As we head closer towards the first-ever manufacture of Boxer vehicles here in the UK, we are delighted to welcome DBS to our UK supply chain, a company which has undergone rigorous supplier selection criteria, as part of our wider programme of manufacturing readiness for this vital new capability for the British Army's Strike Brigade."
DBS Global Defence Director and managing director UK Steve Watson said the firm relishes the opportunity "to continue to strengthen" its local team.
Defence Secretary Ben Wallace recently said the Boxer, Ajax and upgraded Challenger 3 tank will together form part of a "modern armoured nucleus" within the UK Armed Forces.
Cover image: A Boxer mechanised infantry vehicle (Picture: KMW).