The location on the new facility will be determined by the end of the year on completion of a tender process, and it is expected to be operational in 2019.
The move comes following a fire in 2015 that destroyed its operating HQ and blade manufacturing facility.
The firm has also announced the commencement of a £20 million technology development project to deliver capabilities for propeller systems and future propulsion systems.
The project is match-funded by the Department for Business, Energy and Industrial Strategy through the Aerospace Technology Institute, with a grant of £9.5 million, and overseen by Innovate UK.
Oliver Towers, president of Dowty Propellers, said: “We are delighted to be continuing our long history with the Gloucester area. The decision to stay in this area was driven by the capabilities and commitment of our workforce that stretches back over 80 years. This decision, along with our launch of the UK-supported Digital Propulsion project, will enable us to maintain our position as a world leader in propeller systems with the latest technology, supported by world-class research and development.”
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Firm to build new UK HQ and production facility
Aircraft propeller systems manufacturer Dowty Propellers has announced approvals to create a new facility in Gloucester.