U.K.-based Cook Defence Systems will build and design tracks for the British Army's heavy, medium, and light armored vehicles.

The announcement for the contract valued at approximately $106 million followed U.K. Defense Secretary Michael Fallon's visit to Cook's facility, where the metal tracks placed around the wheels of armored vehicles are manufactured. Under the contract, the company will design and build the track systems for the British Army's Challenger 2 main battle tank.

"This contract is good news," Fallon said in a statement. "It continues a long and proud tradition by the William Cook Group, which has been providing track and armor for British tanks since the Second World War."

Challenger 2, built by U.K.-based defense contractor BAE Systems, is the main battle tank used by the British Army. The tank's design is a follow up to the Challenger 1, a legacy armored vehicle known for its service in the Gulf War and the Balkans. The tank comes equipped with a 120mm L30 CHARM gun, with a supporting 7.62mm chain gun.

"William Cook factories have manufactured track for armoured vehicles for many years, providing track solutions with proven performance in the toughest environments," Director of Land Equipment Major General Paul Jaques said. "This four year arrangement with Cook Defence will enable the re-provision of track and associated spares without which our armoured fighting vehicles could not operate."

The U.K.'s Ministry of Defense said the four year contract will help employ 110 people while also ensuring a critical asset for the country's armed forces.