American based Meritor are to invest £36 million in a factory situated in Wales in order to transform the parts manufacturing site.
The factory currently employs 450 workers and the development investment is designed to modernise a site that was constructed during the WW2.
Business Minister Edwina Hart said: "This important investment is very welcome, particularly during these challenging economic conditions and I should like to congratulate the company on the work undertaken to date that will enhance production efficiency and incorporate a range of low carbon environmentally friendly features."