The firm said it wants to build up its Land Systems business

Fifty-four employees will be affected by the move but there will be no redundancies, a spokesman said.

The Wolverhampton site is where the firm's "bridging" business is based - enabling bridges to be attached to tanks and used on operations.

Staff are expected to have joined colleagues already working at a site in Telford by 2009.

The company said it plans to spend �8m as part of the move to refurbish manufacturing areas and build new offices

Andrew Davies, managing director of BAE Systems Land Systems said: "This decision, while potentially unsettling for the employees involved, is an essential part of the transformation of our Land Systems business."