Midland-based automotive support services provider Sigma has launched a new research and development facility.
The initiative aims to create a new generation of software solutions and processes designed to help manufacturers become leaner and greener.
The new R&D facility is based at Technium Performance Engineering at Llanelli Gate in Carmarthenshire and is one of six such centres created by the Welsh Assembly and supported by the EU.
It will be run by a new Sigma division - Sigma Wales - which will operate in partnership with Swansea University.
Brendan Hand, chief executive of the Coventry firm, said: "Global competition and the increasing need to demonstrate environmental sustainability in manufacture can only be answered through a commitment to innovation."
He said Sigma had already gained hands-on experience and had eliminated more than £50 million in manufacturing costs through its work with other manufacturers and the European suppliers.
The R&D facility will enable the firm to build on the successes it has already achieved and develop a new generation of supply chain tools, both for the automotive industry and manufacturing in general, added Mr Hand.
Professor Min Chen, director of the Centre for Computing and Software Technologies at Swansea University, said: "Embracing innovation and partnership is the key to a globally competitive future for the economy and this collaboration demonstrates the enormous potential we have in Wales through building effective partnerships between industry and universities.
"Our experience in working with Sigma has been challenging and demanding but also highly inspirational for us as academics. The most rewarding aspect has been the ability to deliver real innovation to the manufacturing sector."