Car giant Jaguar Land Rover is to double the size of an engine plant under a £450 million expansion programme, creating several hundred new jobs.
The firm said its investment at its site in Wolverhampton, which makes ultra-low emission, four-cylinder diesel engines, shows its long-term commitment to Britain.
Total investment in the site, which opened a year ago, now stands at £1 billion.
The facility has moved from prototype production to manufacture of more than 50,000 engines so far.
The engine was initially launched for the Jaguar XE model.
Chief executive Ralf Speth said: "We are proud to be such a significant investor in advanced manufacturing in Britain and are excited by this expansion and the new jobs it will create.
"The Engine Manufacturing Centre (EMC) is a strategically significant facility for Jaguar Land Rover. The decision to expand our operations at the site provides a clear signal of our commitment to meeting customer demand for cleaner and more efficient engines, whilst developing the skills and capability that Britain needs if it is to remain globally competitive."
JLR said the announcement will lead to the creation of several hundred new jobs at the centre in a move which will see the firm's global workforce hit 40,000 by next year.
In the 12 months since its opening, the EMC has seen its workforce reach 700 with further recruitment ongoing.
Business Secretary Sajid Javid said: "Today's news that JLR is doubling its Wolverhampton site with an additional investment of £450 million is further evidence that the British automotive sector can compete with the best in the world.
"More than 10,000 jobs have been created and about £3.5 billion has been invested in its Midlands manufacturing sites since 2010."
Richard Butler, the CBI's West Midlands regional director said: "This announcement from Jaguar Land Rover will buttress the UK's reputation as a place to invest and boost the competitiveness of our world-class automotive industry.
"Leading the charge for innovative technologies that are made in Britain, this investment will unlock further growth and job opportunities for the West Midlands.
"We must however ensure that energy-intensive industries such as car manufacturing aren't hampered by excessive costs, as we move towards a low-carbon economy, and secure our future global ambition."