The new plant is said to be part of a 400-million-pound (around $614 million) investment which is expected to create 2000 immediate new jobs and a further 1200 new jobs in associated parts supplier businesses. The production plant is set to go up in Wolverhampton and could be running within two years.
The new plant won't just bolster JLR's economy but will also be part of a political boost for the Coalition government, which is aiming to bolster manufacturing aspects of the country's economy.
The new plant hasn't been officially announced yet but according to a Telegraph report in the UK, the plant will produce a range of all-new engines, as opposed existing Ford units currently powering various models.
An official announcement is expected later today.