BAE Systems has won a £280m contract with the Ministry of Defence (MoD), which will create more than 200 new jobs.
The deal, with an option to increase to over £400m, will generate production operative roles at various BAE Systems sites.
It includes 101 positions in Washington, Tyne and Wear, 65 in Radway Green, Cheshire, and 45 in Glascoed, South Wales.
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The agreement involves the supply of munitions to the MoD.
The aerospace company notes the significance of UK manufacturing capabilities and its partnership with the UK Armed Forces in light of global conflicts and tensions.
These new roles will expand its existing munitions business, which currently employs 1,260 people involved in munitions manufacturing or test and evaluation across five UK sites.
The recent orders are part of a £2.4bn 15-year partnering agreement.
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It will boost the production of defence stocks, including artillery shells, medium-calibre rounds, and ammunition.
Investments are already underway to facilitate higher manufacturing rates.
It includes establishing an additional machining line and explosive filling facility and restoring medium-calibre manufacturing capability.
CEO Charles Woodburn said: “This multimillion-pound investment will enable us to significantly ramp up production and sustain vital sovereign capability to deliver cutting-edge munitions, whilst creating and sustaining highly-skilled jobs across the UK.”