Alucast, based in Wednesbury, will make the caps for the
8,000 torches to be used in the relay that will mark the opening of the
2012 games.
Coventry firm Premier Sheet Metals is making the torches, which are 800mm (2ft 7in) in length.
A spokesman for Alucast said the deal was "substantial".
The company's managing director, Tony Sartorius, said the company had quoted for the contract several months ago.
He said: "I think it's important that we showcase the West Midlands as a manufacturing area.
"Clearly it's very important for the economy that we can
still provide employment and this underpins employment in the Black
Country.
"It's a substantial contract. There's about 15 people involved in the project."
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