Jaguar expands Birmingham operation after acquiring Dunlop Motorsport site

JAGUAR is to expand production facilities at its Castle Bromwich factory after taking on the lease for an 11-acre site bordering the plant which is currently occupied by the Dunlop Motorsport tyre manufacturing facility.

The move places in doubt the future of 180 people employed at the Fort Dunlop factory, which manufactures tyres for various endurance car and motorcycle racing teams.

Dunlop Motorsport said in a statement: “We have confirmation from our landlord that they have agreed to sell the Fort Dunlop Motorsport site in Birmingham to Jaguar Land Rover. Our lease agreement remains valid until the expiry of the current lease contract in May 2014.”

The landlord is believed to be a major UK public sector pension fund.

Jean-Felix Bazelin, general manager of Dunlop Motorsport Europe, said contingency plans were being implemented after news of the move was broken to staff at the tyre factory on Friday.

“We have a robust contingency plan to ensure continued supply of our motorsport tyres to our key customers. Our aim is to assess impact and evaluate possible alternatives,” he said.

What the contingency plans are remains unclear at this stage and insiders said the full implications for the deal had yet to be confirmed.

Goodyear Dunlop employs more than 800 people in the West Midlands and the firm currently operates a truck tyre retreading facility in Wolverhampton which could be an option if the company looks to retain manufacturing in the region.

The firm said it remained committed to the Motorsport business and would maintain supply to customers through its European network.

Jaguar has been keen to expand production facilities at Castle Bromwich for some time and with the launch of its new F-Type sports car and the continued popularity of its award-winning XF model it desperately needs extra capacity.

The nearby Lode Lane plant in Solihull is currently developing a new aluminium body shop to enable it to double production of its new Range Rover and Range Rover Sport models.

It envisages something similar for Castle Bromwich but has been handicapped by the lack of space.

Earlier this year the firm acquired a multiplex cinema site adjoining its existing plant to give it some extra capacity.

It has declined to say what its plans are for the Dunlop site saying it would enable “future development”.

In a statement, the company said: “Jaguar Land Rover has exchanged unconditional contracts with Canmoor Developments Ltd to acquire approximately 11 acres of land adjacent to its Castle Bromwich manufacturing plant.

“Jaguar Land Rover continues to work in partnership with local authorities and businesses to ensure that our growth plans support the local economy and community.”

The announcement comes as the company revealed record trading figures with almost 375,000 vehicles sold around the world last year.