80 jobs to be created at Newcastle's Pearson Engineering as part of £2bn Army deal

Scores of jobs are poised to be created at a Newcastle engineering company which will play a pivotal part in the creation of the British Army’s next military vehicle.

The Ministry of Defence has announced the Boxer 8x8 is its vehicle of choice for the next generation of armoured vehicles needed in service in the next few years.

That means Pearson Engineering – part of the Reece Group based at the famed Armstrong Works – will get a slice of the £2bn deal to make the vehicles.

Artec is the German-led consortium leading production of the Boxer eight-wheeled Mechanised Infantry Vehicle (MIV), and it has promised to build the bulk of them in the UK, signing partnership agreements with Pearson, BAE Systems and Thales UK to be Tier One suppliers in anticipation of a deal being struck.

The deal, currently being explored by the MoD, would lead to the creation of around 1,000 jobs, including at least 80 jobs at Pearson Engineering, including six apprenticeships, while safeguarding many more, making drive modules for the Boxer.

The firm’s founder, John Reece, said the deal would bring a traditional industry back to the region.

Mr Reece, executive chairman of Reece Group, said: “This is a positive announcement for the defence industry in the North East.

“When we purchased the Armstrong Works it was part of my vision to bring military vehicle manufacturing back to Tyneside and this decision brings that a step closer to reality.

“By continuing this long and proud tradition we will be able to create a significant number of new jobs and keep valuable skills here in the region.”

It is expected that British companies would compete for the manufacture and supply of many of the vehicle sub-systems, as well as for a full production and assembly line in the UK.

With the likes of Rolls Royce already powering Boxers with engines and Parker-Hannifin, William Cook Engineering and other British companies also supplying sub-systems for the vehicle, the deal could secure a broader industrial UK partnership.

Craig Priday, managing director of Pearson Engineering, said the programme will generate significant opportunities for both the North East and wider UK supply chain.

He said: “This is an important step forward for the MIV programme and we are proud to be part of the UK team to build this important British Army vehicle.”