Jaguar 'plans new engine factory'

Jaguar Land Rover (JLR) is reportedly planning to set up a new engine factory, with a couple of sites in the UK being considered as possible locations for the plant.

Wolverhampton and South Wales are among the potential candidates, alongside an unnamed site in India, for the luxury carmaker's proposed new facility, according to the Sunday Telegraph.

The new plant could add up to 1,000 more employees to JLR's existing workforce of 17,000 in the UK, in addition to giving the automotive sector and the economy a huge boost.

A final decision on the factory is expected from Tata Motors, the Indian owner ofJLR, over the next month. The car manufacturer currently uses engines made by Ford at its UK plants, including in Bridgend and Dagenham.

Plans for the new factory come amid a string of new investments by JLR into its facilities in the UK. Last year the company £2 billion of supply contracts for the new Range Rover Evoque - a move expected to create around 5,000 new jobs.

Jaguar and Land Rover sales were up 13% in the first quarter of 2011, including a record-breaking March for Land Rover in the UK, and the company is on course to make an annual pre-tax profit of £1 billion for the year to March 31.

Tata Motors and JLR were not immediately available for comment.

Copyright © Press Association 2011