U.K. Prime Minister David Cameron yesterday said the Army’s Warrior infantry fighting vehicle will benefit from an approximately $1.5 billion upgrade, work expected to go to Lockheed Martin UK [LMT].

Cameron said: “This shows the concrete benefits of the fundamental changes we have introduced to modernize our Armed Forces and to bring the future Defence Budget back into balance. It means we are now able to ensure our soldiers have greater flexibility and firepower with these upgraded armored vehicles.”

The MoD plans to award a contract to Lockheed Martin UK for the demonstration and manufacture of the upgraded vehicles. The contract award will create and sustain around 600 British jobs across the country within Lockheed Martin UK and its supply chain, the government said in a statement.

Cameron was joined by the new Defence Secretary Philip Hammond and the Head of the Army in saying the vehicles will be fitted with an improved turret and new stabilized 40mm cannon, so the vehicles will be able to fire on the move.

The upgraded vehicles will also benefit from a new standard armor mounting system, providing the flexibility to fit different types of armor and adapt to future protection technology, the statement said.

The Warrior Capability Sustainment Program plan is to extend the vehicles’ service life to beyond 2040, ensuring that the Warrior will continue to play an essential role in future land operations.

The upgrade announcement follows the government’s recent commitment to a one-per-cent-a-year real-term increase in the MoD’s equipment and support budget from 2015–the equivalent of about an extra $4.7 billion.

The Warrior initially built by GKN Sankey/BAE Systems, has been in service with the British Army since 1989 and has distinguished itself on the battlefield throughout its extensive deployments, including in Kuwait, Bosnia, Kosovo and Iraq, and it continues to do so in Afghanistan.

The upgraded Warriors are expected to enter service by 2020, with the first deliveries beginning in 2018.

Alan McCormick, vice president and managing director of Lockheed Martin UK’s Ampthill business, said:  “We are delighted that the MoD has selected us to lead this critical upgrade effort designed to maximize the investment made in Warrior vehicles to extend their lives into the 2040s. The Warrior Capability Sustainment Program will provide a highly capable vehicle to fulfill the British Army’s current and future requirements. It will also bring significant job opportunities for our team of suppliers based here in the UK.”

The 40mm cannon program is the product of Anglo-French co-operation through CTA International, a joint venture between BAE Systems Global Combat Systems Munitions and Nexter Munitions.

Warrior is currently fitted with a 30mm RARDEN cannon.

The upgraded Warriors will also benefit from a new electronic architecture, which will be able to work with advancing technology.