Jaguar Land Rover (JLR) is to build a new engine factory in Wolverhampton.
The new factory at i54 South Staffordshire, a business park near Wolverhampton will cost 355 million. JLR says it will create 750 jobs. Thousands more roles are expected to be created in the supply chain.
JLR chief executive Dr Ralf Speth said: 'As part of our long-term strategy for the JLR business, we will design, engineer and manufacture a new family of advanced engines. This is a major commitment for our company and we will produce these advanced, highly efficient engines for future Jaguar and Land Rover models at a new facility in the UK.
'Expanding our engine range will help us realise the full global potential of the Jaguar and Land Rover brands. The all-new family of four-cylinder engines will increase JLR's capability to offer high performance engines with class-leading levels of refinement, while ensuring continued significant reductions in vehicle emissions.'
The Government is supporting the new factory with a 10 million grant through its Grant for Business Investment'.
Business Secretary Vince Cable said: JLR choosing Wolverhampton for its new engine plant in the face of tough international competition is a tremendous boost for manufacturing in the UK and the West Midlands in particular.
The new range of four-cylinder petrol and diesel engines is likely to be used in a number of Jaguar models, including the XF, and XJ and a possible future smaller saloon.
Land Rover is expected to use them for the Freelander, Range Rover Evoque and also the new Defender.