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Jaguar Land Rover has announced investment plans totalling £165 million with the creation of 700 new jobs at its new engine factory near Wolverhampton.

The new factory, which is set to become operational in 2013, with the first engines for next generation Land Rover and Jaguar models being delivered in 2015, will now employ a workforce of 1,400.

In a statement the company said: “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. "

The investment announcement comes as welcome news after the UK’s manufacturing sector contracted sharply in February after being impacted by bad weather and reduced demand from abroad and domestically.

Jaguar Land Rover creates 800 jobs in Solihull