The Welsh Government is to build a new £2.5 million manufacturing facility for photonic producer Qioptiq.

The purpose-built centre, which will be developed on Qioptiq's premises on St Asaph Business Park, is being delivered after the firm won a £82m contract with the Ministry of Defence (Mod).

Under the six-year deal, Qioptiq will supply and maintain a large range of Surveillance and Target Acquisition equipment for the MoD. The company specialises in the design and manufacture of optical and photonic products and solutions that serve a wide range of markets and applications in areas of defence, aerospace, medial and life sciences and industrial manufacturing.

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The proposed 24,900 sq ft facility will provide secure warehousing and manufacturing space to enable Qioptiq to achieve full operating capacity to deliver the MoD contract within the required timescale. A further £2m is being invested by Qioptiq in fit out and IT systems.

Welsh Economy Secretary Ken Skates said: "I am delighted the Welsh Government was able to support the company's successful bid from the early pre qualification stage through to the development of a purpose designed facility that is vital to deliver the contract.

"This new contract secures the long term future of the company in St Asaph where it has a significant economic impact on the local economy through expenditure by employees and through local supply chains."

(LM/CD)