Ariel will build a factory close to its current Somerset base as it moves to expand its operations.
The new factory will be located to the east of Crewkerne – just off the A303 – on a 43-acre site that was recently acquired by the Atom maker after five years of negotiation.
The building is expected to open within the next three years at a cost of “a few million”, according to Ariel boss Simon Saunders. He added that build costs have risen rapidly since the idea of a new factory was first floated so the company may need to seek outside funding.