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Peter White A defence industry business may soon call London home, but is waiting on word it will land a deal with the Department of National Defence.

The unnamed industry will largely do research and development here, not manufacturing, and will start small with only about 30 workers, sources close to the business said.

"It could be a big deal, but we will not know until they get a contract," an official said.

City officials declined comment on any details of the new business.

"We are working on details of an opportunity and there will be an announcement in the next few weeks," said Peter White, chief executive of the London Economic Development Corp.

"It is advanced manufacturing, it is a new business, it will be good news for London."

The industry may supply General Dynamics Land Systems-Canada, said the official. The armoured vehicle manufacturer on Oxford St. is in the midst of a boom, having landed about $4 billion in new projects.

London West MP Ed Holder was part of two meetings with the business and called it "very good news" for London.

"We have gone through some challenging economic times but there is great emphasis now on advanced manufacturing and we have to make sure London is at the forefront of that," he said.

"What is important is the extent to which Canada as a free trade partner expands its opportunities around the world."

Holder said the new business is the result of an easing of restrictions in the Buy America program that gives products and services made in the United States preferred status when purchased by the U.S. government.

The city badly needs a new business win as four recent economic studies concluded London's economy is underperforming. The city and region lost 8,000 jobs last year, and what jobs were created were largely in part-time, service-oriented work.

The city's gross domestic product, the value of goods made here, is forecast to grow 2.5% this year, lower than the provincial and national average.

As for the General Dynamics deals, they include:


A $2.2-billion deal to supply 724 LAV IIs for the U.S. Army.

A contract to design the Stryker vehicle upgrade valued at $203 million.

A $1-billion deal to upgrade 550 LAV III light-armoured vehicles for the Canadian military through the Department of National Defence.

A $647-million deal with the U.S. army for 352 new Stryker light armoured vehicles.