Jaguar Land Rover (JLR) has praised UK government support for its decision to locate a new GBP355m (US$557m) advanced engine facility in the British West Midlands.

“I would like to pay tribute to the strong support we have received for this project from our key partners,” said JLR Mike Wright. “The constructive and collaborative support we have received from the government, our trade union colleagues, local authorities, local MPs, and of course our employees has been crucial in enabling us to reach this very significant decision.” 

The engine manufacturing facility is expected to create up to 750 highly-skilled engineering and manufacturing posts at JLR, along with thousands more highly-skilled manufacturing jobs in the supply chain and the wider UK economy.

The news comes as Jaguar Land Rover continues with a raft of new models and developments such as the recent launch of the Range Rover Evoque, the new Jaguar XF with a four-cylinder turbodiesel engine and significant enhancements to the XK range, Land Rover Discovery, Defender and Range Rover.

“As part of our long-term strategy for the JLR business, we will design, engineer and manufacture a new family of advanced engine,” said JLR CEO Ralf Speth. “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.

“As we invest GBP1.5bn a year for the next five years on new product developments, expanding our engine range will help us realise the full global potential of the Jaguar and Land Rover brands.

“The all-new family of 4 cylinder engines will increase JLR’s capability to offer high performance engines with class-leading levels of refinement, whilst ensuring continued significant reductions in vehicle emissions.”

Jaguar Land Rover employs more than 19,000 people directly in the UK and supports up to 140,000 jobs in total through the supply chain, dealer network and wider economy.