A £40 million centre to pioneer manufacturing techniques in the Midlands got final government approval yesterday.

The Department for Business, Innovation and Skills (BIS) confirmed that two regional development agencies, Advantage West Midlands and its East Midland counterpart Emda, would split the cost of developing the Manufacturing Technology Centre planned for Ansty Park near Coventry.

The project was described as “one of the largest public sector investments in manufacturing for many years”.

The centre, which is expected to be up and running in 2011, will allow major industrial companies and academic bodies to collaborate on research and development projects aimed ultimately at ensuring that British-based manufacturers can compete on technology as well as cost.

The MTC’s “founder industry partners” were named yesterday as Rolls-Royce, Airbus UK, Aero Engine Controls and Jaguar Land Rover.

The Universities of Birmingham, Nottingham and Loughborough together with TWI Ltd, the operating division of The Welding Institute, were announced as its research partners.

The MTC will be a key component of the 100-acre Ansty Park development off Junction 2 of the M6 that replaces an ill-fated high tech “campus” planned by telecoms group Marconi before it went bust in 2001.

Of the £40 million funding earmarked for the MTC, £25 million will come from Advantage West Midlands (AWM) and £15 million from Emda.

In total, £130 million of public and private sector investments will be made in the centre over the next ten years.

Announcing the scheme, which has been developed as part of the Government’s manufacturing strategy, business minister Pat McFadden said: “Britain has a great manufacturing future, not just a great manufacturing past. We are the sixth largest manufacturing economy globally.

“But the face of manufacturing here is changing and we need to embrace and support the numerous opportunities created as a result.

“That’s why we’re investing in centres like Ansty Park to help business and universities collaborate and commercialise new and innovative products and processes.”

Ian Austin, regional minister for the West Midlands, said: “Today’s announcement is fantastic news for the region and will provide a huge boost for the competitiveness and innovation of our manufacturers, large and small.”

AWM chief executive Mick Laverty said independent economic research suggests that the Midlands will recoup £25 for every pound spent on the new centre.

“The combined investment by the two RDAs will also firmly establish Ansty Park as the region’s home of world class research and development,” Mr Laverty said.

Global telecoms group Ericsson has already transferred its European R&D development to Ansty Park and employs 850 people on the site.

The MTC itself is expected to provide 150 high skilled jobs, he added.

Hamid Mughal, Rolls-Royce’s executive vice-president for manufacturing engineering, said: “High value-added manufacturing will increasingly play an important role in securing the UK’s future competitiveness and prosperity.”