Engineering news
Jaguar Land Rover is to invest £355 million to build low-emission engines in the UK, creating up to 750 jobs.
The new facility will be based at a business park near Wolverhampton in the Midlands, with work due to start early next year.
Dr Ralf Speth, chief executive of Jaguar Land Rover, said: "We expect the engine manufacturing facility to create up to 750 highly-skilled engineering and manufacturing posts at Jaguar Land Rover, along with hundreds more highly-skilled manufacturing jobs in the supply chain and the wider UK economy. This is truly exciting news and is a major commitment for our company.
"As we invest £1.5 billion a year for the next five years in new product developments, expanding our engine range will help us realise the full global potential of both our Jaguar and Land Rover brands."
Dr Speth said the new four-cylinder engines will increase JLR's capability to offer high-performance engines while ensuring continued significant reductions in vehicle emissions.
He paid tribute to the "strong support" from the government, trade unions, local MPs, local authorities and the company's own employees.
JLR has enjoyed a dramatic turnaround in fortunes in recent years, boosted by strong demand from emerging markets such as China and Russia.
The company reported pre-tax profits of £1.1 billion in the year to March 31, up from £14.6 million the previous year. Revenues increased 51% to £9.9 billion.
Tata Motors, controlled by billionaire Ratan Tata, bought the company from Ford for £1.5 billion in June 2008.
But soon after the acquisition, the global car market went into reverse, pushing the company into a loss, and it said it was considering closing one of its production plants in the West Midlands in a bid to cut costs.
As the car market began to recover, the management last year performed a U-turn and said all three plants - at Castle Bromwich and Solihull in the West Midlands and Halewood on Merseyside - would stay open.
With sales showing growth, the company announced an increase in investment and said it would create an additional 1,500 jobs at its Halewood plant.
The company has already hired 3,000 staff this year, including a record 350 graduates, and now employs almost 21,000 people in the UK.
JLR's engines are currently supplied by Ford from plants including Bridgend and Dagenham in the UK.
However, the car maker wants to take greater control of its engine production as sales boom in Asia. It is also considering building a plant in India.
At the Frankfurt motor show last week, the company unveiled three new concept cars, including a new version of the Defender and an eagerly awaited two-seater Jaguar sports car.
The new engines will be petrol and diesel versions, but Jaguar Land Rover said it would not release any technical details, or say which models they will be built for.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said; "Today's announcement that Jaguar Land Rover will build a new low-emission engine plant in the West Midlands is excellent news for UK automotive and comes as SMMT meets high-profile politicians to promote investment-led growth.
"Government now needs to build on this momentum, working closely with the Automotive Council to help deliver growth in automotive manufacturing and the supply chain."