Pearson Engineering has secured a £25m contract to supply turrets for the British Army's Challenger 3 tanks.
The work will secure 285 jobs at the former Vickers factory in Newcastle, prompting a £4m investment in machinery and the recruitment of new technical roles as well as 20 apprentices.
Pearson will supply Washington-based Rheinmetall BAE Systems Land (RBSL), which has an £800m contract to upgrade 148 Challenger 3 tanks - described as Europe's most lethal.