US military truck maker Oshkosh has been looking at a site in South Wales in the UK as a possible location for manufacturing 10,000 trucks for the British Army, which would create hundreds of jobs, writes Robin Roberts.

The Wisconsin specialist vehicle maker is bidding for a $300 million 30-year supply and support contract for the new generation of Army trucks.

It already supplies the US military and has won a tank transporter contract from the MoD but this new tender is its biggest.

It is up against MAN, Daimler Benz and LDV for the contract which includes a controversial fixed price spares clause which would have to hold until 2036, with deliveries starting in 2006.

The contract calls for three different heavy lorry designs to replace the Army’s current range of vehicles.

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To help maximise the investment, Oshkosh is expected to bid for further European military contracts, emergency and civil contracts.

Its rivals may offer to build their vehicles in th north of England if it helps them secure the contract.