Land search sparks rumours of major UK expansion at Jaguar Land Rover

VEHICLE manufacturer Jaguar Land Rover could be set for a major expansion of its UK production operation with reports claiming the company is searching for a sizeable plot of land on which to site a new depot or manufacturing facility.

The company’s ongoing expansion in the UK is underlined by its development of a new £0.5bn engine factory on the i54 site near Wolverhampton. The company has already announced it is double the size of the original factory.

The desperate need for space at its Jaguar facility in Castle Bromwich has seen it take over a former cinema site while talks are also well advanced to acquire the nearby Dunlop Motorsport tyre factory.

Reports now suggest the Indian-owned company is looking for a further site close to its existing manufacturing facilities in either the West Midlands or the North West, close to its Halewood plant.

According to website SHD Logistics the company is understood to be searching for a 30-40 acre plot with a requirement for up to 450,000 sq ft of mixed distribution and manufacturing space.

The website said it believed surveyor Montagu Evans, which has offices in London and Manchester, was advising on the project.

Neither JLR nor Montagu Evans has commented on the reports.

However, the growth plans of the company are well documented and the timing of the reports is significant.

It is widely expected that JLR will announce at next month’s Frankfurt Motor Show that it is to press ahead with a new Jaguar crossover vehicle. It is also thought an announcement on a new entry-level Jaguar to compete with the BMW 3-Series is imminent.

If this is the case then the company will need a significant increase in its production capabilities to produce the volumes necessary for the market. The existing Jaguar plant at Castle Bromwich is already over-stretched with four models – the XJ, XF, XK and new F-Type – rolling off the production line.

It is also significant that these kinds of reports should be circulating now, just as the company is braced for industrial action.

Workers employed by logistics supplier DHL will stage half-hour walkouts at the factories in Castle Bromwich, Solihull and Halewood today.

The DHL employees, who work alongside the JLR workers, are seeking pay parity with those employed by the group.

Tata Motors has urged DHL and the Unite union to try and reach a resolution as quickly as possible.

The firm has also said it has contingencies in place to ensure that production of its vehicles is not impacted by the stoppages.

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