Defence manufacturer BAE Systems is to close its Black Country base and relocate to Shropshire.
The firm said it wants to build up its Land Systems business
Fifty-four employees will be affected by the move but there will be no redundancies, a spokesman said.
The Wolverhampton site is where the firm's "bridging" business is based - enabling bridges to be attached to tanks and used on operations.
Staff are expected to have joined colleagues already working at a site in Telford by 2009.
The company said it plans to spend £8m as part of the move to refurbish manufacturing areas and build new offices
Andrew Davies, managing director of BAE Systems Land Systems said: "This decision, while potentially unsettling for the employees involved, is an essential part of the transformation of our Land Systems business."