BAE Systems in Telford will become a UK Centre of Excellence for armoured vehicles, months after workers were told their positions were under threat.

The move will see some manufacturing take place in the town for the first time in five years after it was decided BAE’s Wolverhampton operation would close, with skills being transferred to Telford.

Bosses at the company, which makes and services vehicles and bridges for soldiers in Afghanistan and Iraq, said about 20 workers will be transferred from Wolverhampton as part of plans to create 24 new jobs.

In April it was thought some of the 180 workers in Telford would lose their jobs to make way for staff at other BAE plants which are due to close.

But the defence company has now revealed Telford workers are safe.

Stefan Blasczyk, regional officer of the trade union Unite, which represents workers, said: “This is one small step in the right direction, and in my view it is a vote of confidence in the Telford workforce.”

BAE previously said the engineering side of the business would be transferred to Telford, but this lastest move will see more manufacturing in place, making it a Centre of Excellence for the first time.

The Wolverhampton site is expected to close next month.

Spokesman for BAE Mike Sweeney said: “It’s been a difficult time for workers at the two sites , particularly in light of the excellent work they have been doing.”