General Dynamics [GD] U.K. and the MoD’s Defence Support Group (DSG) have signed a high-level agreement on the FRES Specialist Vehicle (SV) program.

The Memorandum of Understanding (MoU) would see substantial work taking place at DSG’s Donnington facilities and become the basis for a long-term relationship in support of the U.K.’s defense industrial capabilities, the company said in a statement.

DSG’s main focus is to provide expert, in-house maintenance, repair, overhaul and upgrade services for the through-life support of key land and air platforms and equipment of the U.K. armed forces.

The two companies have agreed to a mutual aim to transfer assembly, integration and test for full-rate production of the ASCOD SV, if General Dynamics is selected, from General Dynamic’s European production facilities to DSG.

Sandy Wilson, president and managing director of General Dynamics U.K., said: “This agreement builds on the strong working relationship between DSG and General Dynamics U.K., as Bowman prime contractor and systems integrator, on the Army’s current fleet. It offers substantial value to the U.K. industrial base.”

Archie Hughes, chief executive of DSG, said: “I very much welcome this agreement, which reflects the capabilities of DSG and its workforce. It would pair the skills of two of the U.K.’s leading Armored Fighting Vehicle (AFV) workforces, maintaining and enhancing the U.K.’s sovereign capability to develop and upgrade AFVs in the long term.”

General Dynamics is offering ASCOD SV, the latest development of a proven European AFV family, for FRES SV. Designed to a rating of 42 tons and with a transmission rated at 45 tons, ASCOD SV offers excellent protection against current and future threats, a common base platform that fully meets the FRES SV requirement, and substantial growth potential for future enhancement, the company said.