New Jaguar Land Rover Plant Creates 750 Jobs

By David Crabtree, Sky News

Jaguar Land Rover has confirmed plans to build a new engine production plant which could bring thousands of jobs to the Midlands.

The car company, owned by Tata Motors, is investing £355m in a new factory outside Wolverhampton, as it looks to bring engine production in-house, away from Ford.

Initially it will employ around 750 people in a facility producing low emission engines to help meet industry targets.

The company said, alongside the engineering and manufacturing posts it is creating, it expected hundreds more to emerge in the supply chain and wider economy as a result of its investment.

Construction at the i54 South Staffordshire business park is due to commence in early 2012 and the factory will be operational in 2014.

Jaguar Land Rover will spend £1.5bn a year for the next five years in new product developments.

They include new four cylinder petrol and diesel engines, aimed at delivering performance while also reducing emissions.

Dr Ralf Speth, the new chief executive of Jaguar Land Rover, said: "This is truly exciting news and is a major commitment for our company."

He paid tribute to the "strong support" from the Government, trade unions, local MPs, local authorities and the company's own employees.

Speaking on a visit to the company's Solihull vehicle production plant, Deputy Prime Minister Nick Clegg said he was "delighted" by the decision.

He said: "Growing our economy has to be the number one priority for Britain, and the Government is not sitting on its hands.

"With initiatives like the Regional Growth Fund, putting up to £10m into this new plant and Enterprise Zones boosting growth across the country, we're making the UK a better place to invest and do business."

The announcement was also welcomed by the Unite union.

Len McCluskey, its general secretary, said: "It is excellent news for manufacturing at these difficult times, and most of all it will be celebrated by the Jaguar workforce and their families.

"This illustrates perfectly how a business can thrive when it works with its workforce and their unions, building on their skills and commitment."

The company is thriving, thanks to demand for its products within emerging markets such as Russia, India and China.

It reported pre-tax profits of £1.1bn in its last year, up from just £14.6m in the previous 12 months.

It has already hired an additional 3,000 workers this year and is considering a new production facility in India.