Jaguar Land Rover set to expand i54 engine plant, reports claim

VEHICLE producer Jaguar Land Rover could be set to increase the size of its new £500m engine manufacturing centre near Wolverhampton, reports have suggested.

The new plant, officially opened by HM The Queen in the autumn, has already been doubled in size from what was originally planned and is helping to support around 1,400 new jobs.

The BBC has reported that the company has now acquired additional land next to the plant on the i54 business park, which was previously used for playing fields.

The land was owned by Wolverhampton City Council and it is thought the company could be on the verge submitting a planning application to the authority seeking permission to expand the plant.

The company has not commented on the reports and while the current plant will be capable of producing a new engine every 36 seconds when running to full capacity, even this may not be enough to sustain the manufacturer’s ambitious growth plan.

The new Ingenium range of engines – which include petrol, diesel and a possible hybrid version – produced at the plant are being used in the company’s new Jaguar XE, which arrives in dealer showrooms next month. It marks Jaguar’s return to the volume market.

However, the car is a global product, built to take on the likes of the BMW 3 Series, Audi A4 and Mercedes-Benz C-Class. If the car is successful and early indications show it could be, then volumes are likely to be significant and account for a major proportion of JLR’s total output.

However, that is just one model. The new engine is destined for the new Jaguar F-Pace crossover vehicle – due out next year – and will be installed in the all-new Jaguar XF, which is being built in an enlarged plant at Castle Bromwich. It is also likely to find its way into future versions of the best-selling Range Rover Evoque and the new Discovery family.

With production volumes approaching 600,000 vehicles a year and with new plants in China and Brazil, then seven figure volumes are not beyond the realms of possibility.

In order to sustain that growth then having control of an engine supply will be critical; therefore expansion of the i54 site would appear likely. There have even been rumours the company could be planning to build another engine plant – which would be a near mirror image of the i54 facility – at another site overseas.

The expansion, if it happens, is also likely to have a positive impact on jobs, although there have been no figures put forward as yet. However, the original factory was planned to employ 700; a number which doubled when the company opted to expand the factory. If the expansion is half as large again then hundreds of new opportunities could be available.

The expansion would also be positive news for the supply chain which feeds into the plant.

Business leaders in the area have already welcomed the move – should the reports prove to be true.