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Car giant Jaguar Land Rover has given the economy a huge boost by announcing plans to create 700 new jobs and £165 million of extra investment.
The money will be spent at the firm's new engine factory near Wolverhampton, which opens later this year, with the first engines coming off the production line in 2015.
The plant will now employ 1,400 workers, with £500 million of investment, making engines for Jaguar and Land Rover models.
The company made the announcement at the Geneva Motor Show, saying: "Jaguar Land Rover's new engine manufacturing centre in the UK is essential to support the company's long-term strategic growth plans and will be the home for a new generation of technologically advanced, lightweight 4-cylinder low emission diesel and petrol engines. "
Chief Executive Officer, Dr Ralf Speth said: "Jaguar Land Rover's new engine manufacturing centre in the UK is a clear demonstration of our business strategy guiding our investment plans. 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."
The state-of-the-art facility is the first in the company's history to be entirely designed and specified by Jaguar Land Rover. At almost 100,000 sq m, the plant will include an engine testing centre alongside the manufacturing and assembly halls.
Unite general secretary Len McCluskey said: "Having lobbied JL Rand the last Labour government to set up a new engine plant in the West Midlands. We're delighted that this state-of-the-art facility is going to be expanded. This is a fantastic boost for manufacturing. JLR is going to build its own engines and it is going to manufacture them here in Britain.
"This is a massive vote of confidence in the skills of the UK workforce. JLR's investment will generate quality jobs in the West Midlands and is a much-needed shot in the arm for Britain's struggling manufacturing sector."
Business Secretary Vince Cable said: "Jaguar Land Rover has added almost 9,000 new jobs at its UK sites over the last two years. These additional 1,400 jobs at the Wolverhampton engine manufacturing centre is more good news for UK manufacturing by boosting exports and creating new apprenticeships.
"With 2.5 million engines produced in this country last year, the UK has established a reputation as a leading global engine manufacturer. JLR's increased investment in the plant to more than £500 million will reinforce that position."