Army cash 'going to Kiwi companies'

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Millions of dollars in army spending will go toward equipment designed and built in New Zealand, the army says.

A fuel dispensing system upgrade, heavy transport trailers, shipping container handling systems, cranes and vehicle servicing facilities were among the nearly $8 million in new equipment which would go to combat service support units.

Assistant chief of general staff capability Colonel Phil Collett said the new equipment would allow the army to improve maintenance and its ability to transport equipment.

The equipment contracts had provided employment for extra tradesmen and sub-contractors on a number of the projects, he said.

Associate Defence Minister Heather Roy said the contracts were "a great example of local industry and defence working together to deliver a project and create jobs".