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General Dynamics Canada signs US$10B armoured vehicle deal with Saudi Arabia

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LONDON, Ont. - General Dynamics Land Systems - Canada has signed a contract worth at least US$10 billion to supply armoured vehicles and equipment, training and support services to Saudi Arabia.

The federal government said Friday that the 14-year contract will create and sustain more than 3,000 jobs in Canada.

It was negotiated through the Canadian Commercial Corp., Ottawa's international government-to-government contracting organization.

If fully exercised, the value of the contract would rise to about US$13 billion, General Dynamics said in a regulatory filing.

Delivery of the first vehicles under is expected in 2016.

"This latest contract confirms our position as a leading armoured vehicle designer and manufacturer in the world," said company vice-president Danny Deep.

Trade Minister Ed Fast called the contract the largest advanced manufacturing export contract in Canadian history.

"Supporting Canadian manufacturers, their workers and their suppliers as they seek out new markets for their products around the world is a primary focus of our Conservative government's efforts," Fast said.

The contract with the Saudis follows an agreement last year that saw the General Dynamics operations in London, Ont., win a US$65.3-million contract with the Colombian government.

The Colombian Ministry of National Defence signed a deal to buy 24 light armoured vehicles from General Dynamics.

General Dynamics Land Systems - Canada also signed a US$24-million deal last year to produce 13 light armoured vehicles for the U.S. Marine Corps.

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