Dozens of jobs are being created by a precision engineering firm expanding into a new Birmingham plant.

German-owned Guhring is investing £12 million to become the second foreign firm to locate to the Advanced Manufacturing Hub (AMH) in Aston.

The expansion, which first came to light last summer, will allow the firm, which supplies the likes of BMW, Ford, JLR, Nissan, Airbus and BAE Systems, to create 50 new jobs and safeguard a further 75.

Guhring is set to begin a search for skilled engineers ahead of a major ramp up in production in the city.

Mike Dinsdale, managing director at Guhring, said: "This move will be a huge step forward for our UK business, which initially focused on distributing standard products all made by our parent company in Germany.

"Now, we will be able to design, develop and manufacture cutting tools specific to our customers' needs in Britain for the first time. We have ambitious plans to realise Guhring's full potential - and are aiming to treble in size and double our workforce within five years of moving to the AMH."

Guhring has taken 3.5 acres at the hub to build a 60,000 sq ft facility, with further space for expansion available.

It marks the completion of a step into Birmingham by the firm which spent 17 years at Abingdon in Oxfordshire.

Guhring moved to a central warehouse facility in Castle Bromwich, Birmingham, in 1990. Its operations focused on sales, marketing and distribution – with the company employing 20 people.

Since then, it has expanded significantly by offering tool servicing and refurbishment, and now has 75 staff.

The firm's new facility, being managed by Bilfinger GVA from its Birmingham base, will enable it to grow further by accommodating R&D and a full manufacturing process.

The AMH is one of six economic zones in Birmingham – sites that offer tailored space and services for companies in target sectors such as advanced manufacturing.

The site was acquired from Birmingham City Council and the Homes and Communities Agency (HCA). The deal was secured by Savills, which acted on behalf of the landowners.

Coun Tahir Ali, Birmingham City Council's cabinet member for development, transportation and the economy, said: "We are dedicated to supporting foreign investors as they locate or expand in Birmingham.

"The international firms increasing their presence here are helping to push our economy forward and create thousands of new jobs for the local workforce each year. Birmingham's economic zones, such as the AMH, demonstrate how we are using key locations across the city to provide the facilities and infrastructure that companies need to thrive and contribute to the local economy."

The firm follows HydraForce, a US hydraulics manufacturer, to the AMH. HydraForce is building a 120,000 sq ft facility at the AMH, which is expected to create more than 200 new jobs during the next five years.

To complete the move, Guhring has received a £650,000 grant from the government's Advanced Manufacturing Supply Chain Initiative West Midlands and Liverpool City Region fund.

This was made available through Finance Birmingham. Its chief executive, Sue Summers, added: "Guhring's plans to establish an R&D centre highlight how manufacturers are using local talent to remain internationally competitive.

"As a respected supplier to major automotive and aerospace firms, its new capabilities will certainly have a positive impact on other manufacturing firms right across the region."