Jaguar Land Rover is set to open a new European factory after outlining plans to expand in Slovakia.
The automotive giant has signed a letter of intent with the government of the Slovak Republic over a new plant in the city of Nitra to be fully operational by 2018.
JLR said the UK remained “the cornerstone” of its business and this was part of plans to become more globally competitive.
The move, which follows a period of intense speculation, is part of a strategy to expand its manufacturing operations into new international locations in the future and comes after similar agreements in China and Brazil.
Dr Ralf Speth, chief executive at Jaguar Land Rover, said with its established premium automotive industry, Slovakia is an attractive possible development opportunity.