A £30m contract to provide state-of-the-art laser vision to frontline forces has been won by the Glasgow-based firm Thales.
Thales described the contract as a boost for the workforce
The all-weather day and night target locator kit enables troops to pinpoint the exact location and distance of enemy forces within 3.1 miles (5km).
Defence Secretary Des Browne said: "This will help deliver more effective use of firepower and save lives."
The Surveillance System Range Finder is expected to enter service in 2009.
The hand-held equipment has built-in GPS and thermal imaging.
Mr Browne added: "This new equipment for our troops is made in Scotland, where some of the most advanced optical equipment is being developed to deliver world class capabilities for Britain's armed forces."
Thales UK's optronics site in Glasgow employs 530 staff.
David Lockwood, managing director of the Glasgow site, said: "This is a great opportunity for Thales, which has been equipping the armed forces for many years, and a real boost for the workforce.
"It allows us to retain and develop our hi-tech skills and expertise, which can be used for other defence products."