Vehicle company Jaguar Land Rover (JLR) is to create more than 1,100 new jobs.
The expansion of the workforce at its Castle Bromwich plant in the West Midlands will support the launch of new Jaguar models, including the XF Sportbrake.
Business Secretary Vince Cable hailed the expansion as "fantastic news for Castle Bromwich, while JLR said this was "a very exciting time for Jaguar".
The XF, XK and XJ Jaguar models are made at Castle Bromwich, with around 80% of production exported to more than 100 markets worldwide.
Mr Cable said : "This is fantastic news for Castle Bromwich that JLR is creating more than 1,000 jobs to support the production of new models at the plant. This expansion is a clear demonstration of JLR's continuing commitment and investment in the UK."
JLR chief executive Dr Ralf Speth said: "Innovation in design, engineering and technology is at the core of our business and for the UK, this means we will continue to invest in new products, develop new technologies and enhance the skills of our employees.
"The launch of our latest Jaguar models, including the new XF Sportbrake later this year, means it is a very exciting time for Jaguar. These new models will attract new customers to the brand as we look to expand our global reach and further enhance our position in the market."
Jaguar has sold more than 29,000 vehicles globally in the first six months of this year - a 19% increase on the same period last year.