INTERSERVE looks to have won the contract to build the new £355m Jaguar Land Rover engine plant in Wolverhampton.

Interserve is understood to have edged out rivals Bowmer & Kirkland and Vinci  Construction to pick up the lucrative contract win.

The new factory, which will manufacture JLR’s new generation low-emission engines, is set to create 750 jobs directly – a figure which is expected to more than double when taking into account new opportunities for the component supply chain.

The factory is to be built on the i54 site, north of Wolverhampton, which has been designated as part of the Black Country Enterprise Zone.

The new engines are intended to give Indian-owned JLR greater control of its global expansion plans. Currently the supply of engines from Ford is insufficient to meet growth targets.

Preparatory works are already underway at the i54 business park with Bam Nuttall carrying out a major earthworks package.

i54 is already home to aerospace firms Moog and Eurofins and the strategy is for the site to become a major hub for the advanced manufacturing sector, creating thousands of skilled jobs.