Jaguar Land Rover is to build a new low emission engine plant in Wolverhampton, creating up to 750 new jobs.

JLR is investing £355m into the plant, which is expected to produce four-cylinder engines for use throughout the company’s motoring portfolio.

JLR chief executive Dr Ralf Speth said: “As part of our long-term strategy for the JLR business, we will design, engineer and manufacture a new family of advanced engines. This is a major commitment for our company and we will produce these advanced, highly-efficient engines for future Jaguar and Land Rover models at a new facility in the UK.

“As we invest £1.5 billion a year for the next five years on new product developments, expanding our engine range will help us realise the full global potential of the Jaguar and Land Rover brands. The all-new family of four-cylinder engines will increase JLR's capability to offer high performance engines with class-leading levels of refinement, whilst ensuring continued significant reductions in vehicle emissions.”

Work at the site, which is in a government enterprise zone, is due to start early next year. The news was made during a visit to JLR's Solihull plant by deputy prime minister Nick Clegg and secretary of state for business Vince Cable.

JLR's engines are currently supplied by Ford.