Hundreds of jobs will be created after Jaguar Land Rover unveiled £450 million plans to double the size of its engine plant.
The car giant said the move would create hundreds of new jobs at the plant at i54 in South Staffordshire which was already expected to employ 1,400 jobs when it was completed.
Total investment in the site, which opened a year ago, now stands at £1 billion – making it the most significant new automotive manufacturing facility to be built in the UK in the last decade.
Jaguar Land Rover said it was a clear signal of the company's long-term commitment to Britain.
Chief executive Ralf Speth said: "We are proud to be such a significant investor in advanced manufacturing in Britain and are excited by this expansion and the new jobs it will create.
"The Engine Manufacturing Centre is a strategically significant facility for Jaguar Land Rover. The decision to expand our operations at the site provides a clear signal of our commitment to meeting customer demand for cleaner and more efficient engines while developing the skills and capability that Britain needs if it is to remain globally competitive."
The new jobs at the engine plant will see Jaguar Land Rover's global workforce hit 40,000 by next year.
In the 12 months since it opened, the plant has seen its workforce reach 700 with further recruitment ongoing.
Taking into account supply chain roles, JLR said it contributed to more than 250,000 jobs.
This represents a further boost to the region's automotive sector after the Post reported last week Sutton Coldfield was winning the race for a new Aston Martin plant .
Rachel Eade, automotive lead for the Business Growth Service, said the investment was a major boost with the sector seemingly on course to match the 1970s peak of two million cars by the end of the decade.
She said: "There has been a lot of talk about Jaguar Land Rover's global expansion plans and the possibility of creating new plants overseas.
"This £450 million investment reinforces the car-maker's commitment to the UK and underlines how the i54 engine plant is already playing a crucial role in the company's ambitious plans to double its production output and achieve lower emission engines.
"As well as the hundreds of jobs set to be created at the plant, there will no doubt be additional spin-offs in the supply chain and we expect our SMEs to be in an ideal position to take advantage of increased volumes and new opportunities."
Elsewhere, JLR has warned it will post a lower annual profit this year, due to a blast at a Chinese port that damaged thousands of cars and factory investments.
Parent firm Tata Motors does not expect to match the £2.61 billion pre-tax profit it made in 2014/15.
China's Tianjin port suffered a large chemical explosion in August which damaged around 5,800 Jaguar Land Rover cars held there at the time, at a cost of £245 million.
The car-maker has in recent years boosted its investment in a number of plants in the UK, Slovakia, Austria, India and Brazil.
The firm's Jaguar C-X75 features in the latest James Bond film Spectre.
Pictures: Jaguar Land Rover's Engine Manufacturing Centre at i54