Projects in the West Midlands have received £57 million worth of funding from the Regional Growth Fund – with Jaguar Land Rover a major winner.
The car giant accounted for three of the 16 initives given Government funding as part of plans to encourage employment.
It said the funding would enable it to increase the manufacturing capacity of its West Midlands’ plants and enhance research and development work in the regions.
Other winners included car industry supplier TRW Automotive, Chinese-owned NVC Lighting and Malvern Instruments.
The Department for Business, Innovation and Skills also approved a £7 million allocations to create a mezzanine loan fund across the Greater Birmingham & Solihull and the Black Country LEP (GBSLEP) areas in addition to a £7 million national tooling fund.
This was the fourth tranche of RGF money, and Business Minister Michael Fallon said £420 million had been handed to the West Midlands thus far.
He said: “The Regional Growth Fund is helping to kickstart British business – especially manufacturing which is a real boon for jobs and growth in the West Midlands. Altogether RGF is investing £420 million into the region to help companies expand and create long-term employment.”
The Government said the £57 million handed out would create and safeguard 10,800 jobs and leverage up to £460 million of private sector investment.
Across the UK, a pot of £506 million was shared across 102 different projects and programmes.
The mezzanine fund will be managed by Finance Birmingham with Birmingham City Council as the accountable body.
The fund, when it gets up and running later this year, will make mezzanine-style loans available for growth capital of up to £2 million.
GBSLEP chair Andy Street said it showed how LEPs can effectively work together to secure funding, as it has joined forced with the Black Country on shared priorities.
He said: “We are already seeing the benefits of previous rounds of the Regional Growth Fund with the expansion of Birmingham Airport and the ongoing investments at Jaguar Land Rover.
“The new mezzanine fund will add to the increasing range of programmes we have available to businesses in Greater Birmingham.”
Mr Fallon visited Cab Automotive, based in Tipton, to announced the fourth tranche of funding.
Cab was awarded £1.6 million of RGF funding from roung three and is investing £8 million in premises new machinery.
The funding will enable the specialist company to continue to supply its customers such as Aston Martin, Jaguar Land Rover and Toyota with high quality seats and interior trim. This has already safeguarded 198 jobs and allowed the firm to take on 20 new skilled staff.
Finance director Richard McCulloch said: “The RGF grant has given the Company the confidence to invest in new plant and equipment which has already proven dividends with new orders of over £10 million. This is exactly what the fund is for and as an SME this gives us the springboard for sustainable growth and job creation.”