By Jonathan Davies

Two hundred and fifty jobs are to be created in South Wales after a Merthyr Tydfil firm secured a £390 million contract to service armoured vehicles.

It follows £3.5 billion deal for General Dynamics (GD) to build 589 of the Scout Specialist Vehicles (SCOUT SV), announced prior to the NATO summit in 2014.

The new contract will see GD service the vehicles as well.

Announcing the deal ahead of a vist to Wales, Prime Minister David Cameron said it was a credit to "skills and expertise" in the area.

"The 250 additional new skilled jobs at GD will build on those already safeguarded by the decision to purchase 589 Scout vehicles for our Armed Forces, ensuring our servicemen and women have the very best equipment to keep us safe," he said.

Mr Cameron also revealed that the government is hoping to persuade luxury car manufacturer Aston Martin to move production of its new SUV to the Vale of Glamorgan in South Wales by vacating land currently occupied by the Ministry of Defence (MoD).

He said: "As we set out on Tuesday this week, we also want to do more to release public sector land to create new opportunities for hard-working people.

"Here in Wales, I think there is real potential to vacate Ministry of Defence land at St Athan, and we're willing to make that available as part of efforts to persuade Aston Martin Lagonda to manufacture their new prestige SUV in the UK."