The future of Dunlop Motorsport in Birmingham hangs in the balance with the historic firm set to be homeless in seven months and no new site in the city yet found.

Up to 300 jobs are under threat five months after Jaguar Land Rover bought the Castle Bromwich plant off its landlord, but Dunlop Motorsport is yet to find another base in Birmingham.

The Post understands its lease runs out in May 24 next year, and the firm has asked JLR for a 12-month extension but was turned down.

It is believed that there is a factory in France which production could be shifted to, but it does not have the full capacity of the Birmingham site.

The firm has been working with Birmingham City Council and private developers in the city and several potential sites have been identified, one of which is believed to be in Aston, but no deal has been reached.

Birmingham Erdington MP Jack Dromey said he was fearful as seven months is not long enough to build a new factory in the city.

He told the Post: “The clock is ticking towards the lease expiring on May 24.

“Building a new factory takes time. Jaguar Land Rover must, therefore, agree to an extension and Dunlop must, therefore, commit to a new Birmingham factory. 125 years of Dunlop history must not be lost to Birmingham and Britain.”

The Post understands a meeting has taken place between the two firms’ chief executives and after a request for a 12-month stay was rebuffed by JLR, Dunlop Motorsport has since asked for a matter of months.

Jaguar Land Rover purchased the site, off Ashold Farm Road, in Castle Bromwich, from its landlord Northern Ireland Local Government pension scheme or NILGOSC. The 11-acre plot is part of plans to expand the site amid soaring global sales, which have seen it post record profits in recent years.

About 180 people work at Dunlop Motorsport on the site, near the firm’s TyreFort headquarters, as well as a further 120 workers in other functions including research and development and IT.

The site produces wheels for a range of car and motorbike races, as well as wheels for historic vehicles, and it will prove difficult to move some equipment which dates back more than 100 years.

The proposals come in the year Dunlop celebrates a 125-year anniversary in Birmingham.

Goodyear Dunlop’s commercial director James Bailey confirmed no deal had been agreed on a new city site.

He said: “We are still evaluating all the different scenarios that are in front of us. Regarding any specific sites, I can’t mention or discuss any at the moment.

“We haven’t ruled out any possibility of any sites. We are currently evaluating all the options.”

He added: “We have said before we wanted to stay in Birmingham, and we made a long-term offer to stay on the site.

“We are still in a position where there is so many different factors affecting the decision it would be wrong to rule anything out.”

JLR’s purchase of a site followed a deal to take over the neighbouring Showcase Cinema, which has since been demolished. It is also knocking down Jaguar Sports and Social Club as part of the development plans.