Up to 400 defence jobs could be created in Wales if a consortium wins its bid to supply a new type of radio system to the armed forces.

CDC Systems wants to set up a research and manufacturing centre at Oakdale in the Gwent Valleys, south east Wales.

CDC is one of three consortia bidding for the �1.7bn Bowman contract from the Ministry of Defence.

The system will replace the Army's ageing battlefield radio system, which is now more than 25-years-old.

Grant aid

The winner is not due to be announced until later this summer - well after the general election.

But in the meantime CDC has been playing up the jobs benefits for the UK in general - and south Wales in particular - if its bid is successful.

It has already held talks with development officials and politcal leaders in Cardiff with a view to attracting grant aid.

A site close to the former Oakdale colliery is thought to have been earmarked.

Friendly fire

The new jobs would help replace 500 set to go at Solectron a few miles away at Cwmcarn.

In August last year, north Wales arms company Raytheon was awarded a �100m deal by the Ministry of Defence to produce a warning system to prevent friendly fire.

The move is expected to create up to 65 new jobs.

The development of SIFF - Successful Identification Friend or Foe - is set to bring jobs to the Raytheon plant at Broughton in Flintshire and also to the former RAF Sealand, which was a partner with Raytheon in the bid.