Special Report: JLR’s new engine plant to spearhead massive economic growth
MASSIVE new investment and thousands of new jobs are in prospect for the West Midlands as a result of the decision by Jaguar Land Rover to commit its new £355m engine plant to the i54 site in Staffordshire.
Business leaders, politicians and industry experts have been quick to hail the development as the answer to the region’s investment prayers and the global status of the West Midlands and its manufacturing sector have been enhanced almost overnight.
The real coup for the region is that it has been able to see off competition from a reported 100 sites globally in order to land the deal – the final shortlist drawn up by Tata Motors comprising three sites: i54, one in South Wales and one in India.
Various suggestions have been put forward as to why Jaguar Land Rover opted for the i54 site but the clincher is thought to have been the Government’s decision last month to confirm its Enterprise Zone status.
However, there are many others. The site has already had around £60m invested in its infrastructure, while its location close to JLR’s existing facilities and within easy reach of Halewood on Merseyside are also significant. A planned new motorway junction dedicated to the site at Junction 2 of the M54 is also part of a series of future investments.
A plentiful – and skilled – workforce right on its doorstep, competitive labour costs and the region’s pre-existing automotive supply chain are also factors.
JLR has also recently taken on its largest ever intake of graduates and the site’s catchment area includes 13 universities, promising a sustained supply of skilled students.
Inward investment body Invest Stoke & Staffordshire said the impact of the new plant would be considerable. It said the first phase of the development would be around 750,000 sq ft followed by a second phase of around 700,000 sq ft. The first phase is expected to be operational in 2014.
Cllr Ben Adams, Staffordshire’s economic growth and prosperity leader, pictured left with Staffordshire County Council leader, Cllr Philip Atkins, said: “Jaguar Land Rover is a world leading car manufacturer and its decision to invest here will mean thousands of job opportunities, not only from JLR but also the hi-tech suppliers.”
The county council first became aware of JLR’s interest in the site in March and began a phased programme of improvements to the site including an £18.5m scheme to create a new entrance to the business park.
“You can imagine the excitement when we became aware that Staffordshire had been shortlisted in a worldwide competition for a suitable site,” added Cllr Adams.
“We had to work at pace and with utmost professionalism with JLR and our partners to make sure the infrastructure serving the i54 would meet the needs of the company.”
Automotive supply chain set for JLR bonanza
The work conducted on its behalf appears to have been appreciated by the company.
Executive director Mike Wright said yesterday: “I would like to pay tribute to the strong support we have received for this project from our key partners. The constructive and collaborative support we have received from the Government, our trade union colleagues, local authorities, MPs and of course our employees, has been crucial in enabling us to reach this very significant decision.”
The factory is expected to create somewhere between 750 and 900 highly skilled manufacturing jobs and this is likely to be doubled when factoring in supply chain opportunities.
The factory itself will manufacture a family of all-new advanced technology low-emission four-cylinder petrol and diesel engines.
Dr Ralf Speth, chief executive officer, JLR, 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 £1.5bn 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.”
The Government is supporting JLR’s project with £10m through the Grant for Business Investment scheme.
Deputy Prime Minister Nick Clegg, pictured with Business Secretary Vince Cable during a visit yesterday to the Jaguar works in Castle Bromwich, said: “Jaguar Land Rover’s decision is fantastic news. It means over 700 new jobs for local people, an investment of more than £300m in the West Midlands and recognition of the expertise in the British workforce and manufacturing sector.”
The recognition for the manufacturing sector has been welcomed by Simon Griffiths, chief executive of the Manufacturing Advisory Service – West Midlands.
He said: “There will be countless opportunities for the supply chain to benefit from more local sourcing. The new plant will almost certainly mean new engine models and there will be significant potential for West Midlands firms and our outstanding R&D institutions to be involved in helping JLR in the design process.”
Len McCluskey, general secretary of the Unite trade union, said the forward-thinking approach adopted by the company together with the determination of the unions to see new work brought to the UK had ensured a competitive labour agreement could be reached.
“It is excellent news for manufacturing at these difficult times, and most of all it will be celebrated by the Jaguar workforce and their families,” he said.
“This illustrates perfectly how a business can thrive when it works with its workforce and their unions, building on their skills and commitment.”
The Society of Motor Manufacturers and Traders is currently banging the drum for automotive manufacturing and chief executive Paul Everitt is lobbying all three main party conferences in the next few weeks to gain support for the sector.
While not speaking about JLR specifically yesterday, his statement was still significant.
He said: “Automotive manufacturing can drive UK economic recovery, enhance global competitiveness and lead the transition to a low carbon future if targeted incentives are in place to encourage private sector investment.
“The competition for high value investment is intense and it is essential the UK does all it can to win its share. The industry has demonstrated great strength and resilience and this has been rewarded by new commitments to UK facilities from global vehicle manufacturers.
“There are now real opportunities to strengthen the UK supply base and bring new investment into fast emerging ultra-low carbon technologies. Targeted tax incentives and support programmes can help trigger the private sector investment needed to kick start growth.”
