Jobs hope for truck firm

The company's HQ would be Llantrisant

More than 1,000 jobs could be on their way to south Wales if an American truck company wins a £3bn Ministry of Defence contract.

According to newspaper reports, Oshkosh - which has a plant at Llantrisant, near Pontypridd - has faced strong competition to win the deal.

The firm is understood to have pledged to create a European headquarters at its Geesink Norba plant in Llantrisant.

It is believed to have beaten fellow US truck maker Stewart and Stevenson, Germany's Mercedes Benz, and Austria's MAN to win the work.

The lucratove contract is to supply general support vehicles to the MoD.

As well as making military vehicles, it makes fire engines and other heavy-duty trucks under the Pierce, McNeilus, Medtec, Geesink and Norba brands.

Production of the military vehicles would start in 2006 and run until 2016. An official announcement is not expected for another eight weeks.

The firm manufactures under several brands

According to one national newspaper, Lord Bach, defence procurement minister, is thought to have accepted a recommendation to appoint Oshkosh.

The contract will mean the British armed forces will receive more than 8,000 new trucks over 30 years.

Oshkosh has scored some notable contract wins with the British armed forces. It won two earlier contracts awarded under the GSV initiative to supply battlefield tankers and heavy equipment transporters.

Oshkosh is contracted to supply 92 of the latter vehicles, which are capable of carrying the 72-ton Challenger II main battle tank, or two Warrior fighting vehicles.

The construction contract for the new trucks is valued at about £1.4 bn, while the associated support contract could take the total value of the deal to more than £3bn.

The army's selection of trucks is seen as crucial for future export orders from other armed forces around the world.

The Llantrisant plant would, at first, assemble components shipped from Oshkosh's main plants in Wisconsin, but greater local sourcing is expected later in the construction run.

The award would also safeguard jobs at the Army Base Repair Organisation in Warminster, Wiltshire, which will service the new fleet.

Oshkosh employs around 6,000 people worldwide, and has annual sales of close to $2bn.