Cummins Power Generation (CPG) announced Friday that it will add 90 employees to its headquarters in Fridley and invest nearly $14 million into the facility.

CPG has extended a contract with the U.S. Army-which was initially awarded in 2004-to produce a line of mobile power generators called advanced medium mobile power sources (AMMPS). The contract extension is what prompted the need for more jobs.

CPG currently employs about 1,800 in the Minneapolis area. In addition to the 90 employees that will be added due to the contract extension, the company plans to grow its local employee base by more than 200 people in 2011.

“[CPG] has been a part of the Minneapolis region business community for more than 40 years, and our commitment to the area is growing,” Tony Satterthwaite, president of CPG, said in a statement. “We are poised for a period of significant growth over the next several years, which will strengthen our business presence in this region as well as the corporate responsibility work done by our employees who take pride in playing a role in improving their communities.”

CPG is a subsidiary of Columbus, Indiana-based Cummins, Inc., and reported sales of $2.9 billion in 2010, with more than a quarter of those sales generated by products made at the Fridley plant.

AMMPS directly support weapon systems, tactical operation centers, communications, intelligence, and numerous other battlefield systems. The Army estimates that the new AMMPS will save millions of gallons of fuel annually in wartime conditions.

According to CPG, its latest AMMPS model is expected to deliver 21 percent fuel efficiency improvements compared to the previous models at nearly a 20 percent reduction in cost. In addition, the power supplies will be lighter, quieter, and more reliable than previous generations.

“In addition to the cost and environmental benefits associated with the new AMMPS, the improved fuel efficiency will reduce the need for fuel trucks and convoys to service military installations in combat zones, increasing the safety of U.S. soldiers,” Army Lieutenant Colonel Michael Foster said in a statement.

In November, CPG announced that it was investing $50 million over the next five years in its facilities in the Minneapolis area, including the purchase of a new 189,000-square-foot office building in Shoreview.