The UK Government has confirmed it has restarted repayments on a trouble £5.5bn contract for the Army's Ajax armoured vehicles which are assembled In Merthyr.
The Ministry of Defence said it will hand over £480m this month after halting payments to General Dynamics more than two years ago.
The vehicles had been due to enter service in 2017, but the project has been repeatedly delayed, with problems including noise and vibration which injured soldiers.
With a corner now turned on the contract, future payments will be made against the new schedule and its milestones - conditional on the delivery of compliant and deployable Ajax vehicles and continued progress of remaining trials activity.
Some 589 Ajax vehicles are due to be delivered to the British Army, bolstering the Army’s land-based reconnaissance capability. The vehicles are scheduled to enter initial operating capability between July and December 2025.
Defence Secretary, Ben Wallace, said: “Having worked closely with General Dynamics to address the issues, I am pleased to say that we are making progress and are now on course to see the delivery of a suite of hundreds of battle-ready vehicles for the British Army.”
Secretary of State for Wales, David TC Davies, said “I’m delighted to see the Ajax programme resuming. General Dynamics is a vital employer in south Wales providing a huge number of well-paid, highly skilled jobs to local people. Ajax vehicles are key to modernising HM Armed Forces and I’m proud that the workers at their Merthyr Tydfil factory are playing such an important role.”
Engineering apprentice, Olivia Joyce, said “The Ajax programme benefits the local area as it provides so many opportunities. For myself, for example, I only live 10 minutes down the road.
"So it’s a perfect opportunity for me to start my apprenticeship and hopefully progress my career. We’re looking forward to proving and showcasing the vehicle for all its worth and capabilities."
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