Levels of spares availability for the AS90, a 155mm self-propelled gun, will also be significantly improved as the result of the £60 million contract awarded by MOD's Defence Logistics Organisation.

The announcement was made at the official opening of Defence Vehicle Dynamics (DVD) 2005, one of the largest defence vehicle shows in Europe, where the defence sector can see at first hand the latest products and developments in military, commercial and emergency vehicles.

Lord Drayson, said:

"DVD is important for both MOD and industry as it represents a unique opportunity for exhibiting and demonstrating, both on and off road, industry's latest military, specialist, commercial and emergency vehicles. It brings together all those involved in producing, procuring and providing logistics support to a vast array of vehicles that helps ensure our Armed Forces continue to have the very best vehicles available to them.

"The partnering contract demonstrates the innovative way MOD and industry are working together to produce new cost effective support solutions. Industry has greater flexibility to provide the required support in the most efficient way, ensuring our Armed Forces continue to have the best support available. The new arrangements are expected to produce some £29 million in savings, representing excellent value to British taxpayers."

Now in its fifth year, DVD features a vast and diverse range of vehicles and support services, from emergency 'blue light' vehicles to the latest combat support vehicles used in places such as Iraq and Afghanistan.