Jaguar Land Rover has announced that it is to reinforce its commitment to manufacturing in the UK by increasing the investment in its new engine manufacturing centre in Wolverhampton to more than £500 million and creating 650 new jobs.
In addition, JLR said it would invest £2.75 billion in product creation during the year to support ambitious growth plans that will see the business introduce eight new or refreshed products during the year.
The engine manufacturing centre (pictured) will be the home for a new generation of technologically advanced, lightweight 4-cylinder low emission diesel and petrol engines.
The new investment will almost double the number of skilled engineering and manufacturing jobs at the plant, taking the total number of people who will be employed at the site to almost 1,400.
Speaking at the Geneva Motor Show, JLR's CEO, Dr Speth said the new centre was a clear demonstration of business strategy guiding investment plans.
He continued: "Not only does it bring our engine supply back to our production doorstep, but it gives us significant new resource as we continue to innovate with new products and markets."
At almost 100,000 sq m, the plant will include an engine testing centre alongside the manufacturing and assembly halls. The centre will open later this year with the first engines coming off the production line in 2015.
Unite the union welcomed the news, saying that JLR had considered opening two engine plants, one in India and one in the UK. Instead, it had opted for one plant in Wolverhampton.