About 260 Boxer armoured vehicles are to be produced for the British Army at a site in Shropshire.
German defence firm Rheinmetall said about 200 jobs could be created in and around its Telford site after it landed the £860m contract.
The plant will build the vehicles over 10 years.
Rheinmetall said the contract would see £20m spent upgrading the Telford site and 60 apprentices trained over five years.
The facility will produce two versions of the Boxer which can each carry a crew of three along with equipment and other passengers.
The £20m investment in the Telford factory will see equipment upgraded and specialist training improved including for welding.
The firm’s sales director Rory Breen said it last manufactured vehicles at the site in Telford about 20 years ago.
“What we will see now is a programme of investment in the facility to create a manufacturing centre for the Boxer vehicle. We will see the first vehicles coming into service in 2023,” he said.