Jaguar Land Rover settles on Slovakia for new plant

JLR will not establish a production base in North America.

Jaguar Land Rover announced on Tuesday that it has signed a letter of intent to build a new vehicle factory is Slovakia.

JLR was looking at several locations for a new plant, including sites in both Mexico and the United States. In the end, JLR has settled on the city of Nitra in western Slovakia.

"With its established premium automotive industry, Slovakia is an attractive potential development opportunity for us,” Dr Ralf Speth, Chief Executive Officer, Jaguar Land Rover, said. "The new factory will complement our existing facilities in the UK, China, India and the one under construction in Brazil.”

JLR will complete a feasibility study before moving forward with the plant but, if all goes well, the facility will be up and running by 2018. No specific vehicles has been earmarked for the plant, but JLR says it will produce "a range of aluminum Jaguar Land Rover vehicles.” The plant will eventually have the capacity to produce 300,000 vehicles.

Despite the plans for the new plant, JLR is adamant that the UK will remain a central part of the company's manufacturing efforts.